Property taxes inherited from parents

[yashK1]

Hello,

My parents are in a different country. Most of their assets is on their name. They are planning to put me as the owner of the current house in which they are living in. We dont rent the apartment. My parents will live in the house. Will this be a taxable event and if yes, how should i calculate the tax on this ? Similarly, I want to know what are the documents I should ask my parents to keep ready to make the tax situation easy for me ?

[JamesG1]

It may be gift tax issue reported on form 709.  The donor is generally responsible for paying the gift tax.

This IRS FAQ answers questions about gift taxes.

This is an area of the tax code where you should obtain professional assistance to review your individual situation.

[yashK1]

What if they make me the nominee of the house and they are the primary owner of the house. Do I still need to report anything to IRS

[ThomasM125 · Accepted solution]

You would need to complete form 3520 Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts if the value of the property is over $100,000 and ownership was transferred to you.

If ownership of the house did not change, however, there would not be any reporting required on an income, information or gift tax return.

[Edited 2/15/21 7:52 PM PST]

@yashK1