inheritance
My father passed away and left me money, houses, & lands in different countries.
The countries are Sudan & Qatar.
My father has a green card.
I am a U.S. citizen.
My father did not set up any trust.
I have 3 questions.
Do I need to pay taxes on the money, houses, & lands?
Do I need to report this inheritance anywhere?
Last year I got $250 from a property rented in Sudan. This property, I think, still under my grandfather, who passed away a long time ago. My father has brothers.
I don’t know the value of the property.
I don’t know the address of the property.
Do I need for report the $250 in the tax return and if yes where?
Answers
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According to IRS Pub 525, "In most cases, property you receive as a gift, bequest, or inheritance isn't included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you." (see pages 34-35)
Based on the information provided, it sounds like the $250 received from the property rented in Sudan is reportable as income on your return. Rental income is reported on the FreeTaxUSA website by selecting Income > Rental Income (Schedule E).
There are, however, additional rules that apply to foreign inheritance. You will need to file Form 3520 to report the receipt of a foreign gift or bequest. Form 3520 is included with your personal tax return when filed. Unfortunately, our software does not support Form 3520 at this time, so you will not be able to use our software to file this year.
For additional information and requirements for Form 3520, you may find the instructions at The section for gifts or bequests begins on Page 12.
