I was wondering if i will need to pay taxes on the money transfered from overseas bank for the sale of apartment that was inherited by me.
Any help would be appreciated.
2007-10-23 04:55:54 · 2 answers · asked by Funny G 1 in Business & Finance ➔ Taxes ➔ United States
i am not making any profit. Just selling apartment and transfering money.
2007-10-23 05:25:48 · update #1
What are other requirements to report money received from foreign country, if it is over a certain limit. And what is that limit?
thanks
2007-10-23 06:26:09 · update #2
If you are a US citizen, yes, your worldwide income is taxable. It's not the transfer of funds that is taxed, it's the profit on the sale.
2007-10-23 05:06:57 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
1. Any thing (money and property) you receive as gift or inheritance, you (the receiver) don't pay any federal tax liability.
2. If you inherit a property, your cost basis is the valuation (Fair Market Value) of the property at the date of the decedent's death or the FMV (Fair Market Value) on the alternate valuation date if the personal representative for the estate elects to use alternate valuation.
3. If you sell the inherited property at a price up to your cost basis you don't have any taxes due. However, if you sell the property at price more than the cost basis to you, then you pay the taxes on the profit (sale price minus your cost basis). Report the sale on schedule D of Form 1040.
4. So if you did not make any profit on the sale, then you don't need to report the sale. However, there are other requirements to report money received from foreign country, if it is over a certain limit.
2007-10-23 05:52:54 · answer #2 · answered by MukatA 6 · 0⤊ 0⤋