It may be close to 20,000 dollars. It will be in Euros. Will I get charged tax on this and is there a way around it?
2007-01-22 02:06:35 · 4 answers · asked by boghopper 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
I did not inherit the house. First of all the house is in Ireland. It was sold and the money is being divided between my siblings and I.
2007-01-22 03:02:46 · update #1
My Mother lives in Ireland. I live in the US.
I suppose my question was, if I deposit this money in my bank account would there be any questions asked by the IRS or whoever and would I have to pay tax on it? good answers so far - thanks
2007-01-22 07:39:51 · update #2
You lucked out... as I understand it your Grandmothers house was in ireland and the check was from your mother and in euros... That said there are three things to consider. One was the house on US soil or under US jurisdiction? NO
Was there a will in US jurisdiction? I am assuming NO
So don't worry about it under just those two issues... lastly
"Gifts and inheritances. Generally, property you receive as a gift, beguest or inheritance is not included in your income. However if property you recieve produces income such as interest dividends or rents that income is taxable to you." What this is saying is that if you recieve the money from your mother as a result of the selling of your grandmothers house it was a gift and not included in your income...Tax free!
Quote comes from pg 87 col1 IRS publication 17 which by the way is free if you Go online to http://www.irs.gov then click on publications and forms...
2007-01-23 02:00:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If your mother actually inherited the house, and she's giving the money to you and your siblings, then you don't pay tax on it, or report it. Your mom will have to file a gift tax return on the gift if she gives it all to you in the same year. If she splits it between two years, then she wouldn't have to. In any case, there might not be any tax - if there is, your mom would be responsible for it. She should find out for sure, so she can hold back enough for the tax if she's going to owe any (probably won't owe though).
I'm assuming that you and your mom are in the US, even though the house was in Ireland. If your mom lives in Ireland, then ignore the part about a gift tax return, that's if she's US. If you are also an Irish citizen and live there, then this whole answer doesn't apply.
2007-01-22 12:35:23 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Did you inherit the house after she died? If so it is not taxable to you.
2007-01-22 10:25:52 · answer #3 · answered by Nusha 5 · 0⤊ 0⤋
yes, there is but it may be too late. consult with a financial advisor asap.
2007-01-22 10:13:51 · answer #4 · answered by sandman 4 · 0⤊ 0⤋