topic I have inherited land in my home land (foreign country) and I plan to sell it this year, what is my tax burden in the US? in Get your taxes done using TurboTax

I have inherited land in my home land (foreign country) and I plan to sell it this year, what is my tax burden in the US?

hansle — Tue, 10 Mar 2026 06:18:09 GMT

Hello,

My mother who is retired now and I have inherited land from her mother(my grandmother). The land is in the Dominican Republic. I have dual citizenship (US and Dominican). We are planning to sell the inherited land this year or next year.

What would our tax burden in the US look like since the sale earnings from the property will be split 50/50?

Is it a good idea if the sale is only done in her name and all documentation is signed by her since she makes no income to lower the tax burden? the property's title is in both of our names.

Thanks

Re: I have inherited land in my home land (foreign country) and I plan to sell it this year, what is my tax burden in the US?

Anonymous_ — Thu, 27 Oct 2022 19:10:47 GMT

@pk ?

Re: I have inherited land in my home land (foreign country) and I plan to sell it this year, what is my tax burden in the US?

pk — Mon, 31 Oct 2022 21:11:09 GMT

What I get from your post are as follows : 1. You and your mother have inherited land from your grandmother in the Dominican Republic. 2. You are US citizen --- how about your mother and your grand mother? 3. When did you inherit the property ? Is there a valuation of the property at that time? I ask these questions because ---- US does not have any tax treaty with the Dominican Republic and for tax purposes you would be ONLY Us citizen; Since the property is in the name of both you and your mother, absent any written proof you each would be assumed to 50-50 partner; While there is no tax on the inheritance itself, you are subject to capital gains tax when you dispose of the asset. Your gain would be sales proceeds ( which is sales price LESS any sales expenses such as commissions, advertising costs, transfer taxes etc.) minus Basis ( which is the fair-Market Value at the time of the passing of the decedent ). Please answer my questions and I will circle back pk

Re: I have inherited land in my home land (foreign country) and I plan to sell it this year, what is my tax burden in the US?

hansle — Mon, 31 Oct 2022 21:33:57 GMT

Hello,

My grandmother was a Dominican citizen only. She passed away Nov. 2012. We received the property's title late 2016 (Oct-Dec.) time frame. My mother is also a US Citizen. and yes, 50/50 share of the sales.

The property price at the time of her passing was unknown and the property price at the time we received the title in 2016 was also unknown. I will have to find that information from the local appraisers. I look forward to your answers.

Re: I have inherited land in my home land (foreign country) and I plan to sell it this year, what is my tax burden in the US?

pk — Sat, 05 Nov 2022 03:17:30 GMT

If the probate process in the DR is as complicated/ red-taped as in India or Mexico ( the two foreign ones I am familiar with) then you should have both the valuation at the passing of your grandmother and that at transfer of title. US tax laws would require you to use the valuation at death as your basis for computing the capital gain. However , and I have no case law to support my position , I would argue that the transfer valuation should be used as basis because (a) it is only then that an official valuation is recognized by all and (b) the inheritor is totally prevented from doing anything with the asset till after the court has valued the asset and is unfair for the inheritor to be burdened with the earlier basis --- but that is only my opinion. There is no taxation ( for US purposes) on the inheritance but there is capital gain/loss on disposition. Ideally because you are both on the title, you should each recognize a percentage of the asset as yours and so the gain/loss could be allocated ( unless of course you actually have a document that declares the share percentage for each owner. Else there is no hard and fast rule but you will need to keep documentation so if audited, you can show the logical path you followed. Also note because this is foreign, any monies/ proceeds that stay in a foreign bank ( in DR perhaps ) would come under FBAR and FATCA regulations ----- you will need to do the needful ( filing the form 114 at www.FinCen.gov for FBAR -- on line only and form 8938 for FATCA along with your return) Does this answer your query or have I missed something? Is there more I can do for you ?