US citizen in Romania

[Possi]

My clients who live in Romania have a new issue. The wife's father passes away last year and she inherited a "substantial amount" from the sale of an apartment, all in Romania.

Is this inherited property treated any differently that if she were here? I don't believe it is a taxable event, as long as it was sold for an amount equal to or less than the FMV upon dad's demise.

[Koss]

Romania

The inheritance is not taxable. And you are correct about the treatment of the sale.

But in Romania, there are steps that may need to be taken in order to be certain that the person is really dead.

If they turn up later as a vampire, it can really foul up the basis of the inherited property.

BMK

[Possi]

Romania

The inheritance is not taxable. And you are correct about the treatment of the sale.

But in Romania, there are steps that may need to be taken in order to be certain that the person is really dead.

If they turn up later as a vampire, it can really foul up the basis of the inherited property.

BMK

OMGawd, I'm glad you told me that! I had no idea! I'll email my client right away!

(((lovethisboard)))

[joanmcq]

Watch out for FBAR and other information reporting issues concerning assets and accounts in foreign countries.

[Possi]

first year

Watch out for FBAR and other information reporting issues concerning assets and accounts in foreign countries.

This is the first year that their foreign checking and savings exceeded 10k.

I only had a few clients who actually lived and worked in foreign countries, who weren't military working for US. Now I am down to this one client.

I have another client who has an account in Norway that holds her Norway Soc Sec equivalent, and that is how I came to know the FBAR form. She was a great teacher. Thank God~

Thanks for the reminder, and yes, I already had it covered.
foronceinmylife...

[Possi]

Fbar

If the account is in the spouse's SS#, does that matter? She filled out the form under her name and social. His is the primary on the tax return.

Since the FBAR is not filed with the tax return anyway, I would assume it would be filled out using the SS that is primary on the bank accounts.

[joanmcq]

If the accounts are owned separately, or if any accounts are owned separately, each spouse has to file their own FBAR.