Tax Question
Dec 11th 2007, 11:43 pm
#1
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Thread Starter
Joined: Oct 2003
Location: Avon Lake, OH
Posts: 5,270
Tax Question
I have just found out that I've been left a rather substantial amount in my grandparents will. Because of the amount it is being paid into my UK account. Does anyone know what issues are involved with transferring it over and reporting it? It will have had the UK tax paid on it as part of the and I would really love not to have to pay taxes on it it as that would suck!
Dec 12th 2007, 1:03 am
#2
Joined: Oct 2006
Location: Reno Nevada
Posts: 15,917
Re: Tax Question
I have just found out that I've been left a rather substantial amount in my grandparents will. Because of the amount it is being paid into my UK account. Does anyone know what issues are involved with transferring it over and reporting it? It will have had the UK tax paid on it as part of the and I would really love not to have to pay taxes on it it as that would suck!
Dec 12th 2007, 1:07 am
#3
BE Forum Addict
Joined: Mar 2007
Posts: 4,059
Re: Tax Question
I don't believe this will be considered taxable income. From IRS Publication 525:
Gifts and inheritances. Generally, property you receive as a gift, bequest, or inheritance is not 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.
For a substantial amount, though, you'd better contact a professional to be sure. Do you and the missus have wills, powers of atty, etc? If not, this would be a perfect time to visit a lawyer who specializes in estate/tax planning.
Gifts and inheritances. Generally, property you receive as a gift, bequest, or inheritance is not 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.
For a substantial amount, though, you'd better contact a professional to be sure. Do you and the missus have wills, powers of atty, etc? If not, this would be a perfect time to visit a lawyer who specializes in estate/tax planning.
