topic Foreign country inheritance property sale in Deductions & credits

Foreign country inheritance property sale

southleb2017 — Mon, 03 Jun 2019 19:03:20 GMT

I inherited a property in a foreign country, I am the sole heir and US citizen, and I am selling it. How come I do not owe any inheritance tax (total of assets will be less than USD 200 K, both cash and property proceeds), but at the same time I will be taxed capital gains tax on the property sale? There is no foreign trust or estate in the US sense of the notion and I live in TX. Please, advise. thank you.

You may not owe tax simply for becoming the owner of the...

Anita01 — Mon, 03 Jun 2019 19:03:21 GMT

You may not owe tax simply for becoming the owner of the property. An inheritance is generally not taxable in the US either, except for certain things like retirement investment accounts, and inheritance tax really has nothing to do with income tax. But, once you do something like sell an inherited asset, that generates taxable income.