US citizen inherits money from Canada (lives in US)

yukkles · Post by **yukkles** » Wed Aug 31, 2011 9:43 am

I have inherited some money from Canada. The total estate was < 1,000,000 and my part of it is much less than that. Is it required that this be reported anywhere for tax purposes or for any other purpose?

mcmoxley · Post by **mcmoxley** » Wed Aug 31, 2011 9:50 am

No. Inheritance of liquid assets is a non-taxable, non-reportable event in either country. If the inheritance consists of property or investments (stocks, bonds, mutual funds, real estate), you should make note of the fair market value of the property as of the date of the person's death. When the property is sold, you do report capital gains or losses vs. the property's value at the time you inherited it.

madhoa · Post by **madhoa** » Wed Aug 31, 2011 9:54 am

This is wrong. Inheritance from a foreign (non US) estate with a value > 100K needs to be reported on IRS form 3520 (see part IV) .

nelsona · Post by **nelsona** » Wed Aug 31, 2011 10:15 am

While no tax will be owed by the inheritor in either country, regardless of the amount, it is reportable on 3520 if the US person's share is more than $100K..