Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I am a usa citizen and inherited a property in scotland from

Customer Question
my uncle who is british...
I am a usa citizen and inherited a property in scotland from my uncle who is british. the sale of the house is soon and i was told i would have to pay capital gains here in the usa. how much? and is there anyway i can avoid or lessen the tax amount as i have been informed it is high.
JA: The accountant will know how to help. Is there anything else important you think the accountant should know?
Customer: I think that is it.. I just need to know is there alternatives to invest this money to reduce the tax burden currently.
Submitted: 1 year ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 6 minutes by:
11/13/2016
Tax Professional: Stephen G., Sr Income Tax Expert replied 1 year ago
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,239
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

Ask Your Own Tax Question
Customer reply replied 1 year ago
i have yet to receive an answer and am very confused by this. they tell me my answer is ready but there is no answer available. I am not sure if it is ready even though they sent me an email saying it was....i am very confused and this is starting to be stressful. I also do not own a cell phone so cannot be texted. Can someone tell me what I am doing wrong.
Tax Professional: Stephen G., Sr Income Tax Expert replied 1 year ago

Well, you were partially mis-informed.

The sale is indeed subject to capital gains tax here in the USA.

However, what is important is how you determine your tax basis in the property for computation of gain.

Under REV. RUL. 84-139, 1984-2 C.B. 168, a US Citizen who inherits real property located in a foreign country from a non-citizen determines his tax basis in the same way that it is determined if the property were located in the US.

For purposes of reference, here's the actual code sections that apply:

Foreign real property that is inherited by a United States citizen (A)from a nonresident alien(B) will receive a step-up in basis under sections 1014(a)(1) and 1014(b)(1) of the Code. A’s basis in the real property sold is the fair market value of the property on the date of B’s death, as determined under sections 1014(a)(1) and 1014(b)(1) of the Code.

So, if your uncle died within 9 mos to 1 year prior to the date of sale, the IRS, absent any information to the contrary, will normally accept the gross selling price on the date of sale as the fair market value of the property on the date of death.

What that translates to in plain English, is that you will have no capital gain and probably a capital loss.

Let me finish........................

Ask Your Own Tax Question
Tax Professional: Stephen G., Sr Income Tax Expert replied 1 year ago

There's no need for a telephone call. Hold on, these things take time to get right.

Ask Your Own Tax Question
Tax Professional: Stephen G., Sr Income Tax Expert replied 1 year ago

Basically, you will have to report the sale, but due to any commissions or other expenses of sale, you may actually have a capital loss on the transaction.

When did your uncle die, what date approximately if you don't have the exact date handy?

Approximately what date do you expect the property to sell?

Steve G.

Ask Your Own Tax Question
Tax Professional: Stephen G., Sr Income Tax Expert replied 1 year ago

You aren't doing anything wrong; a telephone consultation is an option, not a requirement.

We can continue to communicate this way until you fully understand; there's no need to talk on the phone unless you want to. It is not necessary.

When you are clear as to how this should be handled, then please provide a rating for me as that is the only way I will receive credit for assisting you today.

Can you answer my questions on the dates and/or do you have any other follow-up questions?

Hello? Are you still here?

Let me know when you return by typing something.

Steve G.

Ask Your Own Tax Question
Customer reply replied 1 year ago
i sent you the information and am trying to connect with you but something is not working on this site with my computer. I am not upset with you but the way this site is working. i hope this goes through otherwise i will have to contact the site.
Tax Professional: Stephen G., Sr Income Tax Expert replied 1 year ago

Did you receive my answers to your questions indicating that you must report the sale but most likely have a capital loss?

Let me know, I thought you were gone & I've been with another customer.

Please remember to provide a rating.

Thanks very much,

Steve G.

Ask Your Own Tax Question
Ask Stephen G. Your Own Question
Stephen G.
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,239
7,239 Satisfied Customers
Experience: Extensive Experience with Tax, Financial & Estate Issues

Stephen G. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I have over $300K of foreign tax credits available for me to
I have over $300K of foreign tax credits available for me to use while I was an XPAT outside the U.S. I am now back in the U.S. and only spend a few days working overseas. I am looking for tax strateg… read more
TaxWhisperer
TaxWhisperer
Principal
Master's Degree
24 satisfied customers
I just sold a foreign property [condo] at a huge loss. I
I just sold a foreign property [condo] at a huge loss. I paid $58k for it and sold it for 10k The property was worth less than 100k and therefore was never declared on my returns. Can I claim this los… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am a foreigner looking to invest in the us an potentially
I am a foreigner looking to invest in the us an potentially move to the us. most investment will be in real estate what is the structure that will minimize the taxes. If I moved to the us I will not n… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,267 satisfied customers
What are the turm capital gains tax on properties that are
what are the long turm capital gains tax on properties that are in germany? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
I am currently a nonresident alien, but I anticipate that I
I am currently a nonresident alien, but I anticipate that I will be a resident alien for 2018, as I expect to be present in the US for the entire year. I am being asked my my employer to provide them … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Is inheritance income from Germany subject to US taxes?
Is inheritance income from Germany subject to US taxes? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
My question is about taxation of capital gains on equities,
Hello, My question is about taxation of capital gains on equities, like stocks, options, futures of F1 students. Here the facts:1. F1 student for 4 years in the US2. student does not get any income wi… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
I'm working to understand capital gains tax for California
I'm working to understand capital gains tax for California property purchased 4 years ago. It's a primary residence, purchased 4 years ago for $385k with $285k principle outstanding. Expected sale price of $630k … read more
abci168
abci168
Principal
27 satisfied customers
Resident Alien - Married couple - one is US citizen and the
Resident Alien -Married couple - one is US citizen and the other is Canadian but is US resident alien.If couple purchases a house as their primary resident, is there any tax implication outside of the… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Are you familiar with Capital Gain taxes on rental property?
Are you familiar with Capital Gain taxes on rental property? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I sold a rental property at a loss (no capital gains);
I sold a rental property at a loss (no capital gains); however should I pay the $133,000 on the principal of my house I owe 166,000 at 2.8% or buy another rental? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Tax question is there anyway to offset a capital gain of 60
Tax question is there anyway to offset a capital gain of 60 to 70k by buying another commercial property… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Would it be correct to report a foreign cash inheritance as
would it be correct to report a foreign cash inheritance as an initial and final on form 3520? bequest, no trust, will require FBAR now and for some years but the 3520 is mny concern … read more
abci168
abci168
Principal
27 satisfied customers
Capital Gain - A taxpayer has capital loss (short term and
Capital Gain -A taxpayer has capital loss (short term and long term) carryover from stock sales. He also has loss carryover from rental property.When he sales the rental property, all the rental loss … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
A Nonresident Alien just took steps towards becoming a a
A Nonresident Alien just took steps towards becoming a a U.S. Permanent Alien in June 2017. He is an airline pilot with a tax home in Hong Kong. He has a Mandatory Provident Fund established with the … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Is a non-resident alien who has paid capital gains on a
Is a non-resident alien who has paid capital gains on a property required to pay a gift tax if the money is given to a child. (grown) The donor has no income in 2016. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My mom is a nonresident alien, she spends 1 month out of a
My mom is a nonresident alien, she spends 1 month out of a year in the US. If the has a brokerage account in the US, and buys and sells domestic stock, are capital gains, short or long, tax exempt?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My friend is a nonresident alien student in the US. If he
My friend is a nonresident alien student in the US. If he receives a wire transfer from his home country, am I correct that is nontaxable income, and does it matter whether the money comes from his ow… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x