Can I be taxed on overseas inheritance?
Can I be taxed on overseas inheritance? I recently inherited a property overseas from my mother who is not an american citizen. The property is worth $100,000 roughly. Will I be taxed on this? If I decide to sell the property will I be taxed on that even though I will have to pay taxes in the other country? Thanks for the help
Public Comments
- You aren't taxed on the inheritance of the property. If you sell the property, then you will have to pay taxes on the gain, if any. The "cost" is the fair market price of the property on the date you inherited it. Then when it sells, you subtract the cost (converted to US dollars) from the selling price (converted to US dollars) and pay capital gain income taxes on the difference (reported on Schedule D). Any loss is not deductible. The tax paid in the other country would be governed by the tax laws of that country. You would have to check with them.
