DianeW777
Expert Alumni

Get your taxes done using TurboTax

Yes. As a US citizen you are required to report all worldwide income on your tax return. If the condo was sold relatively closely after your mother passed away, then you might have a cost basis of the fair market value (FMV) on the date of death. It means there would be virtually no gain or loss on the sale of inherited property. This assumes your name was not on the property before death.

 

The IRS would want it reported even if you have no gain, to show the cost basis.

 

You would be allowed to claim a foreign tax credit or deduction if there was income tax paid to Canada and you were taxed on the same income on your individual US income tax return. It may not be relevant if you have no gain or you did not pay any tax in Canada.

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