My grandmother in Hong Kong left me around US30,000 in her will. My father is going to be wiring the amount to my bank account here in the US soon. Will that money be subject to an inheritance tax or any sort of tax? Also, is wiring the money the best way to transfer the funds? Thanks in advance!
2007-07-30 09:25:31 · 2 answers · asked by blutails 1 in Business & Finance ➔ Taxes ➔ United States
There is no Federal inheritance tax so there would not be any Federal tax on it. A few states do still have inheritance taxes so you may have a state tax bite. Without knowing which state you live in it's not possible to say.
Wiring the money is unquestionalby the safest way to transfer the funds.
There are reporting requirements that you will need to comply with. Here's a link to the instructions for Form 3520. You will probably need to report the bequest in Section IV. This is a reporting requirement only and does not trigger any tax liability. http://www.irs.gov/pub/irs-pdf/i3520.pdf
2007-07-30 09:41:48 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Inheritances are never taxable. The estate might be subject to some kind of tax, but the inheritance is not taxed, whether it comes from abroad or not.
2007-07-30 16:31:12 · answer #2 · answered by Andy S 2 · 0⤊ 0⤋