What is the inheritance tax on international property? 3 Answers as of May 04, 2011

A condo in Hungary was inherited by a naturalized US citizen. After it is sold, and proceeds transferred to a US bank, are the proceeds US taxable? If so, is there a way to minimize the tax burden?

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Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
A US citizen pay income from whatever source derived and is taxable on its worldwide income. Generally, the receipt of an inheritance is not taxable, so the receipt of the real estate is not a taxable event in the US.

Once sold however if there is a capital gain, then there would be a capital gain tax on such sale. However, you must check to see if there is a tax treaty between Hungary and the US that may have an impact on any of these general rules. Also, you must check the tax laws in Hungary to see if any of these items are taxable under their tax system. You should retain a tax attorney to assist you on these details.
Answer Applies to: Pennsylvania
Replied: 5/4/2011
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
Inheritance taxes are a matter of state law. There shouldn't be any us tax .
Answer Applies to: California
Replied: 5/3/2011
Law Office of Harry Gordon Oliver II
Law Office of Harry Gordon Oliver II | Harry Gordon Oliver II
No US estate or infeitance tax on receipt of inheritance. If there was a gain on the sale of the property that may be subject to US income tax. But maybe no gain because tax basis n should be equal to Fair Market Value of property at DOD. Thanks.
Answer Applies to: California
Replied: 5/3/2011
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