Welcome Guest. Register Now!  


For 2016 Tax Tips For Year 2016.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-19-2017, 01:51 AM
Junior Member
 
Join Date: Jan 2017
Posts: 1
Inheritance tax from abroad

My grandfather was born in Costa Rica however he was a US citizen living in the US for the majority of his adult life. He recently passed away and left my mother, who is also a US citizen, an inheritance in the form of a CD. The CD is in Costa Rica, my mother is the sole beneficiary and the CD is for over $150,000.

My grandfather sold property in Costa Rica about 7 years ago and immediately put that money in a CD and it has not been touched in those 7 years.

My mother would like to transfer that money to her US bank account, however we have questions about if the money is taxable. We have asked a few tax "professionals" and we have been given different answers, so hopefully someone here can help. Please let me know what the easiest and most legally cost effective way to do it. Thank you



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-19-2017, 04:09 PM
Junior Member
 
Join Date: Jan 2017
Location: Houston, Texas
Posts: 19
There are generally no taxes on transferring money into the U.S. (there is a withholding tax on trasnferring money out).

There are two primary taxes in the U.S. that you are probably asking about, an income tax and an estate/gift tax.

With respect to the estate/gift tax, those are taxes on transferring property. They look to the value of the amount transferred. If it was transferred during life, the gift tax can apply, if on death, the estate tax can apply.

There is an amount of property that is exempt from the estate tax. It is several million dollars. So the first thing you have to figure out is what was the total value of all assets of your grandfather's estate and was it large enough to incur an estate tax.

With respect to the income tax, it will be imposed on the income from the CD. This may be reported on your grandfather's income tax return or your mother's income tax return, depending on the year.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Inheritance issue [email protected] Miscellaneous 4 04-21-2013 10:38 PM
Inheritance WHANSMA Income 1 10-18-2012 01:09 AM
inheritance issue gdproj Income 1 08-22-2012 07:29 PM
Inheritance Tax bone1124 Miscellaneous 0 10-30-2009 12:12 AM
Inheritance Tax lcarrero Miscellaneous 0 03-13-2009 01:13 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.