U.S. TAX GUIDE IN THE UAE
How is inheritance taxed for US citizens?
Inheritance tax, known as estate tax in the US, applies to US citizens inheriting assets from non-US persons. The IRS values inherited assets at their fair market value (FMV) at the date of the deceased’s death.
Is inheritance reported on US tax returns?
Yes, the inherited value must be reported on the gift tax return, including cash and property values. Income generated from inherited property, like rental income, must be declared and is subject to US tax.
What should I know about inheriting property?
- Fair Market Value: The IRS assesses inherited property based on its current market value.
- Reporting Requirements: Ensure correct reporting to the IRS, especially for income-generating assets.
- Seek Professional Advice: Consult a tax professional to navigate inheritance tax laws and ensure compliance.
