Money from France, Inheritance- how is it treated by U. S. IRS?

[Joeaksa]

Son, you need professional help...

You see boogie men where there are none...

I NEVER suggested anything illegal, YOU are the one who pulled that one out of where the sun does not shine...

Last post on this thread, you can wank off by yourself here.

[johnsjmc]

Originally Posted by Joeaksa

Son, you need professional help...

You see boogie men where there are none...

I NEVER suggested anything illegal, YOU are the one who pulled that one out of where the sun does not shine...

Last post on this thread, you can wank off by yourself here.

You have a history of leaving when you are shown to be wrong . The remarks about sun don,t shine and bend over say something about your hobbies.

[LakeCleElum]

Originally Posted by Dottore

I don't know the answer, but would be very surprised if it was this simple.

Spend an hour with a good tax accountant.

Good advice Markus....I know a tax attorney that used to work for the IRS. About every 4 or 5 years, I make an appoint, walk in with a list of questions and it's the besti value I get for money spent. Last time he just billed me for 1/2 hr - $85...

[greglepore]

Originally Posted by jwasbury

US citizens are required to report and pay tax on worldwide income, so leaving assets offshore does not mean you don't pay US tax. However, Receipt of gifts or inheritance is not taxable income under US tax law. US Estate and gift taxes (if applicable) are borne by the grantor rather than the grantee. Presumably if the decedent was a French citizen and resident, then the French estate/gift tax regime will apply.

The exact nature of the assets in the estate will determine what course of action should be taken after the estate process is concluded. The US-France tax treaty specifically covers things like owning real estate and business interests...situations where there is a tangible presence in the country of non-residence. Generally when there are income producing tangible assets in the non resident country, there will be an ongoing requirement to file a return and pay tax in the non resident jurisdiction. There may be no such requirement if the assets in the non resident country are only bank/cash accounts. The treaty will also contain provisions to mitigate double taxation.

Bottom line is this stuff can get complicated. Have your friend seek professional counsel. Sounds like she can afford it.

Exactly correct. There is no US "INHERITANCE" tax - there is an "ESTATE" tax, payable by the estate, but only applicable to US decedents (this is the tax to which the exclusion discussed above applies). Therefore, what she inherits is not a taxable, or even reportable, event.

However, once the assets transfer to her, anything they generate is taxable income, and as stated above, ownership/tax issues regarding overseas assets can be complicated.

[Deschodt]

Originally Posted by johnsjmc

I read there is no US Federeal inheritance tax .I,m sure the French gov,t will get a share first Some states may also want a share. There are IRS reporting requiments. If over 10k in foreign deposits they need to file a TDF 90-22.1. there is also a form 3520 which I think is for taxpayers with signing authority on foreign accounts .
Try NOT to take the advice given above about ways to hide it ,penalties for failing to comply with the reporting requirments can be up to 250K and 5 yrs. in prison.

What john said, to a T !! It's *not* taxable but you *must* report it when you bring it home - which you should do since it's not taxable... The forms John mentioned are downloadable and easy to fill, but a tax attorney won't cost you more than $150-200 for this, which is cheap peace of mind... Also, while it may be possible to get this wired directly, in my experience, for inheritances, the money only gets disbursed to a french account and then you must transfer to the US, so you must also declare that Foreign account to the IRS. Even if it's funded for only 3 days and you shut it down already. Silly rules, but hey, tax free is a good deal...