Similar questions have been asked before, but in this case there is a little caveat that I need help with.
I am a US citizen. Last year I received cash inheritance from deceased parents in China (who were not US citizens). The inheritance was managed by my sibling and based on whatever financial laws China have, he wasn't allowed to directly wire the money into my US bank account. Instead, I had to go to China, open an account in a Chinese bank under my name, have him transfer my share of the inheritance into that account, and then wire it into my US bank account.
I understand that TurboTax doesn't file FBAR or F3520 because inheritance isn't taxed. What I would like to find out is how to declare it to the IRS. On the surface it seems that it should be declared as a gift on F3520, but I had to open a foreign account briefly in order to wire the money to the US, so does this mean that I should also fill out FBAR even though the account was only opened for the purpose of wire transfer and now has no deposit in it?
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Bendertax,
Did you ever receive an answer to your question?
I'm currently in a similar situation except my mother lived in Canada. The executor had the Canadian bank mail me a check so I did not have to open a Canadian bank account.
The IRS doesn't impose an inheritance tax.
Only a handful of states (Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania) have some kind of inheritance tax. Refer to your state's Department of Revenue to see what the requirements are for filing an inheritance tax.
Click this link for more info on a Cash Inheritance.
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