Foreign Inheritance Tax (2018) – U.S. Tax on Overseas Inheritance

Foreign Inheritance Tax (2018) – U.S. Tax on Overseas Inheritance Foreign Inheritance Tax (2018) – U.S. Tax on Overseas Inheritance by Golding & Golding Whether or not a person has to pay U.S. tax on money or assets they received from a foreign inheritance is a very common question. Usually, there’s a very simple answer, which is that you do not pay tax on the receipt of a foreign inheritance. In other words, if you are a U.S. person and you receive an inheritance from a person who is a non-U.S. person, involving non-U.S. money then there is no tax. But, there may still be a reporting requirement. Why Is There No U.S. Tax? The United States follows an estate tax model. That means, that it is the estate that is being taxed and not the inheritance. Stated another way, it is the money of the person who passed away which is being taxed, and not the actual recipient’s portion of the money that is being taxed. Therefore, if…

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