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Subject Author Date
Foreign Inheritance - How to bring to USA? dbu 11-13-2006
Posted by dbu on November 13, 2006, 7:50 pm
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 My wife may shortly be receving a sizable inheritance from a
dying relative in Asia. I believe inheritance is
nontaxable, but would we need any special documentation on
file when we send the money to the US? The relative is from
a rural area where no one really has official wills or
anything like that. The wishes of the deceased are normally
just carried out by the eldest son. I am concerned the IRS
might try to call the inheritance a "gift" which it is not.

Thanks

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Posted by Phil Marti on November 14, 2006, 8:28 pm
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> My wife may shortly be receving a sizable inheritance from a
> dying relative in Asia. I believe inheritance is
> nontaxable, but would we need any special documentation on
> file when we send the money to the US? The relative is from
> a rural area where no one really has official wills or
> anything like that. The wishes of the deceased are normally
> just carried out by the eldest son. I am concerned the IRS
> might try to call the inheritance a "gift" which it is not.

Gifts aren't taxable income either.

Ask your banker about any special forms that may need to be
filed to report the cash transfer from overseas.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on November 14, 2006, 8:28 pm
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dbu wrote:

> My wife may shortly be receving a sizable inheritance from a
> dying relative in Asia. I believe inheritance is
> nontaxable, but would we need any special documentation on
> file when we send the money to the US? The relative is from
> a rural area where no one really has official wills or
> anything like that. The wishes of the deceased are normally
> just carried out by the eldest son. I am concerned the IRS
> might try to call the inheritance a "gift" which it is not.

Of course it is, a gift at death. Gifts are not taxable to
the recipient, but there are banking forms to file on the
transfer of funds.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by cballard@tyyni.net on November 15, 2006, 10:05 pm
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dbu wrote:

> My wife may shortly be receving a sizable inheritance from a
> dying relative in Asia. I believe inheritance is
> nontaxable, but would we need any special documentation on
> file when we send the money to the US? The relative is from
> a rural area where no one really has official wills or
> anything like that. The wishes of the deceased are normally
> just carried out by the eldest son. I am concerned the IRS
> might try to call the inheritance a "gift" which it is not.

If the amount of the inheritance exceeds $100,000, then your
wife must file Form 3520 for the year that she receives the
inheritance. No tax is due. If the form is not filed and
the IRS finds out, the IRS can assess a penalty of up to 35%
of amount of the inheritance.

--Chris

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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