Money from Iran

[Duane Anderson]

Taxpayer received title to family home in Iran in 1997 when Father died. My long time client has 2/3 interest in the property and his sister 1/3. Both are US citizens and their mother lives in the USA. Home was worth about $200,000 at date of death and now approximately $2,000,000. If they bring any of the money into the USA, I assume it is taxable and no legal way to reduce their tax bill. Would moving the money to Switzerland from Iran ease the tax burden with them bringing in much smaller $ annually?

I am way out of my comfort zone on this one, and I have no idea of the tax consequences in either Iran or Switzerland so any help or direction would be much appreciated. Thanks,,,Duane Anderson

[JohnH]

I am way out of my comfort zone on this one, and I have no idea of the tax consequences in either Iran or Switzerland so any help or direction would be much appreciated. Thanks,,,Duane Anderson

And yet you are seriously thinking about getting involved with this return? You've already said a couple of things in you post that I'm not sure I would even express on a public forum...

[ATSMAN]

Check the state dept and other regulations regarding assets or money coming from IRAN. I believe there is an asset freeze etc. and as a tax preparer I do NOT want to draw the attention of law enforcement authorities to answer more questions that I have no answers.

[TaxGuyBill]

I don't know much about this subject, so maybe I'm missing something, but ...

The taxpayers are US citizens, and therefore are taxed on their worldwide income. Was the property sold? If so, it is taxable no matter where the money is. From a tax perspective, it doesn't matter if it is in Iran, Switzerland or the US. If it was not sold, what money are you talking about?

As a side note, don't forget Form 8938 and the FBAR's FinCEN Form 114 if required.