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inherited property

omnk2000
Level 1

Hello.

How do I report inherited property that sold out of USA?

Thanks.

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7 Replies 7
sjrcpa
Level 15

The same as the sale of any other property, but inherited property is automatically long-term.

What does "sold out of USA" mean?


ex-AllStar
omnk2000
Level 1

Thanks for your respond.

House was sold out of USA,  they don't have to pay  capital gain  right?

Thanks.

 

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sjrcpa
Level 15

Us citizens and Resident Aliens pay US tax on their worldwide income.

Are you saying the property sold was not located in the US? It is still a  taxable gain for the client.


ex-AllStar
omnk2000
Level 1

Inheritance is not taxable isn't?

 

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Terry53029
Level 12
Level 12

Take a look at some of the courses you took for your CE classes, or check out pub 17

sjrcpa
Level 15

Receipt of an inheritance is not taxable. If you then sell what you inherited, the gain is taxable.

You still haven't answered the question about whether this is foreign property, but be aware there may be 3520, FBAR, 8938, etc. filing requirements.


ex-AllStar
omnk2000
Level 1

Yes it is foreign property.

Thanks.

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