If you are getting a large amount of money from overseas, what kind of tax problems will I incur when it is deposited into a nominated bank account in the United States if I'm a next of kin?
2006-10-02 16:23:59 · 4 answers · asked by Todd S 1 in Business & Finance ➔ Taxes ➔ United States
I'm in the 28% tax bracket
2006-10-02 16:26:05 · update #1
The U.S. Federal Government does not tax any inheritance. They only tax estates. Some state governments tax inheritance and some tax estates and some both and some neither, so you better check with your state.
That being said, you better be damn sure that you are not being scammed. There is an extremely high likelihood that you are. Did you ever hear of this person who died? Were you contacted with a registered letter or an email? How much money are they asking you to send to insure you receive the inheritance or to get it through customs? Did they make you set up a bank account and then put money in it and then tell them the account number?
Don't be taken...please! Not only will you, a honest person, be out of money, but the crooks perpetrating the crime will have more funds to keep it up. Check out the link I attached for more information. If, in the remote chance the inheritance is legitimate, enjoy the money federal income tax free.
2006-10-02 17:00:52 · answer #1 · answered by TaxMan 5 · 1⤊ 0⤋
Assuming that you can prove that this money is an inheritance you will have no tax liability in the US. It would be helpful if you had a death certificate and a will or what ever document made you the beneficiary. Surely do not send any money to anyone to make this happen without first contacting an attorney familiar with the estate laws of the country in which the will was probated.
2006-10-02 17:25:33 · answer #2 · answered by ? 6 · 0⤊ 0⤋
The US has no taxes on foreign inheritances. Any taxes due the foreign country should be taken out before you get the money. So no tax problems. If you start earning interest on the money here then that will be taxable in the year earned. And watch out for scams as noted in other answers.
2006-10-03 04:53:35 · answer #3 · answered by spicertax 5 · 0⤊ 0⤋
It depends how it's set up. Is this going to be a trust fund and if so what kind of trust? Most trust payments are taxed because their annuities. You need to get the advise of a tax lawyer. As far as taxes go it depends on the payment amount and a few other variables.
2006-10-02 19:50:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋