A parent died and a token size inheritance may come my way from outside the US. At what level does it become taxable? How is this handled? Years ago (different person) I received something like a 1099 with something about a tax treaty - it was a savings account set up for me with tons of strings attached. I managed to have is closed and declared nothing on my taxes - as far as I recall. joe
Inheritance from outside the US
Nov 17, 2008
1 Replies
"Joe Lauton" wrote
In general the bulk of it is not going to be taxable income to you.
There may, however, be some elements of income as part of the inheritance. Ask the executor of the estate what part - if any - is income and the amount and type.
If there is any income being distributed (generally interest, maybe dividends or capital gains) it's treated the same as all other same-type income.
The interest earned should have been reportable income in most cases. But that was "years ago" and I'm sure it was handled correctly.
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