My mother was the trustee of a house for my brother and I since 2005. The title was officially transferred to us after we both became adults (2021). We are planning to sell foreign property for 1,000,000 and we will each get 500,000 wired to us. How would I file this?
@Faiswal , what is your immigration status -- US citizen/Resident ( GreenCard)/Resident for tax purposes or Non-Resident Alien ? What about your brother? Where is the property located? What type of trust was this --- a decedent trust or what -- that is what I am trying to understand is your basis in the property -- is it to be treated as a gift or as an inheritance ? Anything that could establish the basis of the property attributable to you would help in this .
Waiting to hear from you
If you are U.S. citizens, you would income tax on any gain you enjoyed for the property. To calculate the gain, you have to know the cost basis of the property. It may not be easy to find that cost number.
You may also owe income tax to the country where the property is located. And, depending on how the money is delivered to you, you may be obliged to file federal forms related to foreign bank accounts.
Since the dollar amount is large, you would do well to hire a tax expert to help you. Find one who has handled many international tax questions, ideally some of them involving the country where your property is located.