Inheriting non-US properties for a US citizens

No. The gain on the sale is taxable. The gain is net proceeds less basis. Basis is the fair market value of the property on the day the citizen's father died.

Schedule D will be completed and included with the tax return.

The US person can do just about anything with his money that he wants. He must report any income on his U.S. tax return.

yen wrote in news:56c8e951-78a4-42df-9680- snipped-for-privacy@s50g2000hsb.googlegroups.com:

After my father died, I inherited part of his estate. I considered the inheritance property acquired on his date of death, with a basis as of that date (including the sale of the house), convertible (on paper) as a value in US$ using the rate of exchange on that date. Taxes on an estate are paid by the estate not the person inheriting, at least in the US and in Europe as well.

Over the years, transferring moneys from my account abroad to the US resulted in capital gains since the US let the dollar devalue significantly after 2001 (a beef I have with the curent administration). In addition, any income generated by the inheritance abroad was declared each year.

Or on the alternative valuation date.

In addition, if you have over 10k in a foreign bank, you have to declare the existence of the account to the Treasury Department by June 30. The form is TD-F-90221

I thought you could only use the alternate valuation date if it reduced the estate tax. And since the deceased was not a US citizen or resident, there is no US estate tax.

Since there is no estate tax filing requirement for the foreign decedent, there is no alternative valuation date.