Money received from sale of inherited property from another country (philippines)

[CaSha]

I might receive almost $80,000 from sale of inherited property in the Philippines. Will I get taxed here in the U.S. even if I already paid inheritance tax and other applicable taxes in the Philippines? .. Thank you for answering

[suzyquzy · Accepted solution]

If you inherited the property and then sold it, you are taxed on any gain on the property. To the extent the same gain was taxed by the Philippines, you can claim a foreign tax credit on Form 1116.

If the estate owned the property; sold it, and then gave you money because you were a beneficiary of the estate, the money is not taxable.

[CaSha]

Thank you! suzyquzy.    property is owned by parents and property is up for sale.  proceeds goes to surviving mother, myself and siblings and we will pay inheritance tax and other applicable taxes in philipppines   All of us are US citizens.  Good to know that money is not taxable  because we are beneficiaries...

[CaSha]

In relation to question above, if we open an american bank in the philippines like bank of America, can we withdraw entire money from BofA account when we reach the US?.. thank you for answering.

[suzyquzy]

I think that is a question for the bank.

[CaSha]

Ok  We will inquire , Thank you so much for your time  🙂

[suzyquzy]

You're welcome

[lyudmylarippes]

You are also required to report the inherited assets on Form 3520 if you meet the $100,000 reporting threshold.