Hello,
What are my tax liabilities in the following case?
I am a US citizen and live in the US. In 2009 I and my two siblings inherited a house with land from mom located in Hungary. I want to gift my share to my niece who lives in Hungary. She plans to sell it with my permission on my behalf and she would keep the money received for my share as a gift. I estimate this amount would come to about 10-20K. Will i have to pay income tax or long term capital gain tax here in the US as well as gift tax? How much?
What forms i would need to file?
Since i would like to cover my tax expenses from the total of my share of the sale, should i have the money be transferred to my US bank account first then I would transfer back any amount left after my taxes or should the money go directly to her Hungarian bank account after the sale and only the portion i need to pay my taxes to be transferred to my bank account? I am not sure what receipt is needed for IRS records regarding how much money i gifted. Is there anything else i need to be aware of?
Thanks for your advice. Ilona
