Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My mom is a Mexican citizen and naturalized US citizen. She…

Customer Question
My mom is a...

My mom is a Mexican citizen and naturalized US citizen. She lives here in the u.s. She is a beneficiary of her Mexican deceased fathers Trust. The trust is 12 acres of land in Mexico. She wants to sell the land and transfer the monies it to the U.S. What taxes are imvolved?

Submitted: 4 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
12/2/2017
Tax Professional: emc011075, Tax adviser replied 4 months ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,585
Experience: IRS licensed Enrolled Agent and tax instructor
Verified

Hi. My name is ***** ***** I will be happy to help you.

Under the current tax legislation if she sells an inherited property for more than the fair market value at the time of inheritance (date her father passed away) she will have long term capital gains to report.

Generally, if the property is sold within 6 month of inheritance for about the same as the transfer value (at the time of inheritance), there are no tax consequences. But if the value of the land is more than 100K (assuming her father is not US citizen) she will have to report foreign gift/inheritance.

Ask Your Own Tax Question
Customer reply replied 4 months ago
He passed away in 2016. She plans to sell in 3 years. Fare market Value of land is $55 million pesos = $3 Million U.S. Dollars. Does this additional info help? After giving this info, what kind of taxes does she have to pay?
Tax Professional: emc011075, Tax adviser replied 4 months ago

Because early this morning the senate passed a new tax bill and the details are very sketchy, I have no idea what will happens in 3 years. And honestly, hardly anybody knows. But as it stands now, she will only pay capital gains (20%) on the difference between the fair market value + selling expenses and the sales price. The inheritance should have been reported on her 2016 tax return.

Ask Your Own Tax Question
Customer reply replied 4 months ago
She had to report it in 2016 even though the land hasn't been sold that is part of the trust? She is a beneficiary, but the executor of the will hasn't even distributed the land or monies to any beneficiary yet.
Tax Professional: emc011075, Tax adviser replied 4 months ago

You have two issues here. One is reporting inheritance (informational) and the other is actual sale (potentially taxable when sold in the future).

She still needs to report inheritance (not the sale itself) even if she has not sold the land yet.

Ask Your Own Tax Question
Customer reply replied 4 months ago
My last question. I appreciate it. The land in the trust hasn't even been subdivided. She is just a beneficiary equally out of four children. She is entitled to 1/4 of the land or sale of the land, but not subdivisions or titles are even created yet. So are you saying she has to report only that she is a beneficiary of 1/4 of xyz Trust?
Tax Professional: emc011075, Tax adviser replied 4 months ago

Yes. She only needs to report what she is entitled to. In her case 1/4 of the value of the land. She she already filed her 2016 return she should amend it. Since the reporting will not increase her taxes there will be no penalties.

Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 4 months ago

Is there anything else I can help you with today?

Ask Your Own Tax Question
Was this answer helpful?
Ask emc011075 Your Own Question
emc011075
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,585
3,585 Satisfied Customers
Experience: IRS licensed Enrolled Agent and tax instructor

emc011075 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

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,451 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 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.

< Previous | Next >

Related Tax Questions
In case of a foreign inheritance in equal parts to 4
In case of a foreign inheritance in equal parts to 4 children, in which the process takes till the following year to start releasing bank funds to the 4 children, is the year that Form 3520 and 8938 n… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
On property inherited in July 2015, if sold, how much tax
On property inherited in July 2015, if sold, how much tax will be owed. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
If I sale property that I inherited over 23 years ago what
If I sale property that I inherited over 23 years ago what taxes will I have to pay after the sale of that property. It is located in Washington State … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Acquired property via inheritance in 2013 (not primary
Acquired property via inheritance in 2013 (not primary residence). It was appraised for $65,000 then and sold in 2017 for $60,000. In completing Form 8949 I end up with a - $0.00- amount in Column (h)… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
I sold an inherited property where does turbo tax file the
I sold an inherited property where does turbo tax file the information . do not see it … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I used a calculator to figure capital gains tax on the sale
I used a calculator to figure capital gains tax on the sale of my rental property in CA... do the figures look reliable? I am a hawaii resident. Will there be other taxes due besides capital gains? Th… read more
Carter McBride
Carter McBride
LLM
966 satisfied customers
Iowa Income Tax. Is 100% of capital gains on the sale of a
Iowa Income Tax. Is 100% of capital gains on the sale of a rental property deductible if the requirement is met for hours spent for management of the property? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
Inherited land/property - term loss or? Several moving
Inherited land/property - long term loss or? Several moving parts: Taxpayer inherited, along with her elderly father, a 40-acre plot with structures not used for rental activities and a 2.5 acre plot … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If a property is inherited and the inheritor has and still
If a property is inherited and the inheritor has and still intends to live in said property, does the capital gains tax still apply? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
Inherited property was sold in California with my four
Inherited property was sold in California with my four siblings. I live in GA. I received a 1099-S for my portion of the sale. I also had to pay Mandatory Real Estate Withholding to the CA Franchise B… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
921 satisfied customers
In regard to inherited property, does the beneficiary HAVE
In regard to inherited property, does the beneficiary HAVE to use the stepped up basis or can the decedent's basis be used instead? What if you cannot determine what the basis would have been at the t… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
Do You Need to Pay Capital Gains Tax on Inherited commercial
Do You Need to Pay Capital Gains Tax on Inherited commercial Arizona Property If Sold? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
Is US tax owed on a small foreign inheritance, My wife, a
My wife, a resident alien, received a small distribution from her father's estate last year in 2017. The funds were deposited and still are in a South African bank, The total is less than $15,000 … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,064 satisfied customers
How do I report inheritance income. How do I report
How do I report inheritance income JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: how do I report inheritance income JA: Is there anything else impor… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
921 satisfied customers
How do I report inheritance income? How do I report sale of
How do I report inheritance income? How do I report sale of a business I operated for 13 years?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 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
15,124 satisfied customers
How to report the sale of a property outside US? How to
How to report the sale of a property outside US? How to claim the taxes paid abroad on the profit made by selling property overseas?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 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
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