My father passed away in Ecuador a month ago and left me a house. Do I need to report the money from the sale of this house to the IRS once I bring it into the country?

[DianeW · Accepted solution]

If you are a US resident and filing as a full year resident (and/or citizen), then all of your worldwide income is reported on your tax return when you have a right to the income.  

In your situation, for US tax purposes, an inheritance allows a "stepped up basis" which means your cost basis is the value on the date of death of the original owner, your father.  For you this means that if it is sold close in time to the date of death, there will be little to no actual gain on the sale. You should report the sale in the tax year that it occurs on your tax return for that year. This will be 2018 for your, regardless of when the money is brought into the United States.

The value of the inheritance, and the fact that you received an inheritance is not a taxable event for your tax return.