When my father dies years ago he left me a small house. I was only able to recently sell it there. Then I wired the money to the my account in the U.S. . Do I owe any taxes on it? do I have to report it> and if any how much will I have to pay? thankz
"only able to recently" indicates that it may have appreciated in value.
You have several forms that you should have filed (like 3520) when you inherited it.
You have enhanced reporting this year under 6038D by April 2012 with your regular tax filing.
You have some FBar if the money was deposited.
Beware the currency prohibited transaction trap. Get valuation at death and at time of sale and compute gain or loss without currency effects before gain/loss
How much you have to pay depends upon a proper computation.
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Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.
Mr. Harrington is quite the genius here. I had no idea about the form 3520. So, I looked it up! A link to the form and instructions are below.
Generally, form 3520 is required to be filed if you receive a gift from an individual or estate from abroad in excess of $100,000. The instructions state that "generally" the minimum penalty is $10,000! So, please take Mr. Harrington's advice quite seriously with respect to fililng this form!
You should probably seek the services of an experienced CPA.
Marty Davidoff, [email protected], 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.
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