I as US Citizen inherited Foreign Money from Sale of Deceased Father's Property in Philippines. My Father Is Not US Citizen & is not Greencard holder. Capital Gains Tax & other taxes have been paid in the Philippines. Is Foreign Inheritance Money I received still taxable in US? Thank you. Are these requirements FATCA or FBAR still applicable to me when I file my 2017 Tax return? Thank you
Inheritence is not taxable but the disposal of the property may create capital gains tax. The Fair Market Value (FMV) on the date of death of the decedent is your basis as the beneficiary. If you sold the property rather than the trustee of the estate, then you have report the sale. just as if the property was in the USA -- you report the basis -- as defined above, the sales price and all the sales expenses etc. If there is a net gain, then this will be treated as longterm capital gain. Any taxes paid in the Philippines can be used as foreign tax credit or as a deduction if you itemize. Sometimes people in such situations include the taxes paid as part of the sales expenses ( even though it is not quite correct ).
If the monies you get from this transaction in the Philippines rest in any local bank at any time before transfer to USA , you probably would trigger FBAR ( Treasury-FINCEN form 114 ) and FATCA (IRS form 8938 )reporting requirements - there is not tax associated with this.
Sorry for your loss