Foreign Property

[GoIsotopes]

"Hypothetical" question...

My friend inherited a piece of property with her father. Father sold property, paid taxes and bought another. He recently sold that property and now a sizeable chunk of change is coming back to the country.

What are the rules?

[Bees Knees]

A sizeable chunk of tax must be paid.

[George Boutwell]

Sizeable Amount of Missing Details

A sizeable chunk of tax must be paid.

Regardless of where the property was located, its basis was stepped up at date of death, and it is unclear why taxes would have been paid when it was sold. It is also unclear whether there was a gain on the sale of the second property, and to whom it would be taxable. (Just the father? Or was the co-owner involved here also?)

There is no tax on bringing foreign funds into the United States. Cash transfers may have to be reported, but are not taxed. The sinking dollar may have resulted in capital gains on foreign-currency transactions, but we don't know half the story here.

[Gretel]

Yep, a lot of unanswered questions. I would assume that, if cash was used to buy second property, all gain from this property would be taxable to whomever.