Tax Prep by Deb Posted February 11, 2016 Report Share Posted February 11, 2016 I have a client who inherited about 10,900 us dollars from her Mother's estate in a foreign country. How do I determine if it is taxable in the US? Quote Link to comment Share on other sites More sharing options...
Roberts Posted February 11, 2016 Report Share Posted February 11, 2016 Was her mother a US citizen living abroad with foreign assets? Which foreign country are we talking about? Was her mother a Nigerian Queen? (If there is a tax treaty with the US, almost certainly such a small amount would be passed through tax free. If it was going to be taxed, the amount would be subject more likely to foreign tax jurisdiction prior to being distributed to a US citizen. JMO) Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted February 11, 2016 Author Report Share Posted February 11, 2016 From what I know so far, Mother is not a US citizen nor was the asset a US Asset. I'm going to have to check on Country but my current guess would be Portugal. Quote Link to comment Share on other sites More sharing options...
Roberts Posted February 12, 2016 Report Share Posted February 12, 2016 Even if the person is a foreigner, I don't think it would be taxable in the US. If anything, it's a gift and falls below the gift threshold. In the US, gift rules are part of the estate tax rules. If there was going to be tax - it would be taxed back at the home country at her estate level - not at the recipients level. JMO 1 Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted February 12, 2016 Author Report Share Posted February 12, 2016 My thoughts as well, basically it really doesn't matter tax difference if I include it or leave it off as there income is low enough they would not owe anything. But like I said it was a new one for me. Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 12, 2016 Report Share Posted February 12, 2016 1 hour ago, Tax Prep by Deb said: My thoughts as well, basically it really doesn't matter tax difference if I include it or leave it off as there income is low enough they would not owe anything. But like I said it was a new one for me. In general an inheritance is not income. Unless there is interest etc earned after a demise, in which case that portion may be income. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 12, 2016 Report Share Posted February 12, 2016 But you might need to look at FBAR requirements to see if this triggers a filing requirement for her. 2 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 12, 2016 Report Share Posted February 12, 2016 And, there is a form when bringing in financial assets, 35XX? Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted February 13, 2016 Author Report Share Posted February 13, 2016 I believe I looked at the form you are trying to reference Lion, but I believe we are under the threshold, if it's the same one it stipulated it would be needed if over 15,000 and this was under that. Quote Link to comment Share on other sites More sharing options...
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