My husband inherited foreign house 2020 I am reporting 709 and 706 should I amend 1040 on 2020

[sarahyang108]

706 form

[pk]

@sarahyang108 , 

(a) is your husband  / inheritor a US person ( citizen/GreenCard/Resident for Tax purposes)?

(b) Was the decedent a US person at time of passing or NRA ?

(c) Where is the house (country )?

(d) What was the approx FMV at the time of passing of the decedent?  Is the property titled in your husband's  name alone or shared with others?  How is the property being used  ( family use/ income / or ? )?  Has it been disposed off or still in place ?

I am not sure why you think you need(/ed) to file a  709 or even 706  and for which year?   I am assuming here that  if the prop is income, you are filing the required  Schedule-E or if sold you have recognized any cap gain etc.  Also that if there are any bank / liquid assets involved you are filing ( if required ) FBAR and FATCA forms.

I will circle back once I hear from you -- yes ?

pk 

[sarahyang108]

my husband is a US citizen his father (immigrant to US 40 years ago) also a US citizen. His mother is also a US citizen. my husband inherited his father foreign old house when father died at 2020. His mother died 2025. The old house title transferred to my husband’s name 2020. The house market value around 700k. Do I need to report 706. 

[pk]

@sarahyang108 

Assuming that the total value of your parents-in-law is less that approx. US$13 million, there is no estate tax and therefore no need to file a form 706.  Since the prop. was inherited by your husband in 2020 ( at the passing of  his father ) , I am assuming that he did get a valuation of the asset.  This value would be his "basis" in the asset and with no step-up at the passing of his mother in 2025 ( since she was no longer an owner / not on the title ).  When he sells the prop. the gain would be  taxable  foreign source capital gain and taxed as such.  How is the prop. being used in the meantime?   Note  that any income generated by the asset needs to be recognized for US tax purposes.  Which country is it in ( for foreign tax and  tax treaty purposes )?

My ref. for this is :  form 706 instructions -->  Instructions for Form 706 (Rev. September 2025)     ---- page 2

Statute --IRC -- section 2201 thru 2801 --->  26 U.S. Code Subtitle B - Estate and Gift Taxes | U.S. Code | US Law | LII / Legal Information Insti...

Is there more I can do for you ?

pk