# Receiving gift or inheritance from foreign parent



## expus (5 mo ago)

I am naturalized US citizen. My parents are foreign who have no relation to US whatsoever. If I receive a house from my dad in the future as inheritance or as a gift now, do I show it in my US income tax return? Will this event create any US tax liability for me? Does it matter where I live when this happens - either US or my native country?


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## Moulard (Feb 3, 2017)

There really isn't enough info in your question to give you a full answer...

So a partial answer... First the US side...

I assume that the house is not located in the US or her possessions and territories.

That being the case, from a US perspective, my understanding is that the gift of the house to you would not be taxable but it would be reportable on Form 3520.
Any subsequent income generated from the home would then also be taxable (Rent, Capital Gain on the sale etc).
The country where the property is located would have the primary right to tax this income and you would be able to reduce your US tax liability on this income up to the amount of income and/or CGT paid to the country using foreign tax credits.

As to the native country side... 

Without knowing the country it is impossible to determine if there are gift or estate taxes that might come into play (ie given to you before death or as part of the distribution of his estate) or indeed who would be liable for them. But based on flags I am going to assume both your father and the home are in Türkiye.

I am no expert, but letting my fingers troll through the internet suggests that recipients of property through inheritance or donation are subject to inheritance and gift tax at rates ranging from 1% to 30% and would be payable over a period of 3 years in biannual installments.

There are no gift and/or estate tax treaties between the US and Türkiye that would override her domestic taxation of the gift.


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## expus (5 mo ago)

Moulard said:


> There really isn't enough info in your question to give you a full answer...
> 
> So a partial answer... First the US side...
> 
> ...


yes the house is located in Turkiye. It was bought by a foreign person on a foreign country which has nothing to do with the US.
I was only asking about US tax consequences. Are you sure we have to report on 3520 when i receive the gift or inheritance? or it is not reportable at all, until a rent or capital gain income is obtained?


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## Moulard (Feb 3, 2017)

It will depend on the value of the house.

Gifts of more than $100,000 from a nonresident alien individual or a foreign estate have to be reported in Part 4 of Form 3520.

If its less than that, then no reporting required.


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