From: Boulder, CO via Brazil
Greetings from Brazil, Dear Tax Mama!
I'm here to resolve some muddy financial issues that arose from my father's
death.
My specific question to you is:
He had an apartment, which I'm selling at its market rate of $US 50.000,00.
There may be more money from life insurance, but I don't know until I get
it.
1) How can I legally bring that money into the US?
What are:
2) Taxes upon entering with this money?
3) IRS taxes?
4) Inheritance
taxes?
5) Forms? Regulations?
6) Best way to invest this? Buy real estate
in the US? Other possibilities?
Thanks
Cris
Dear Cris,
LOTS of questions. And they are very appropriate questions. But waaaaaaay
more than a free columnist can answer in depth. So, let me touch the high
points for you and set your mind at rest. But, do get someone, a good local
tax pro, to help you - at least for this year, OK?
1) How can I legally bring that money into the US?
Just get the proper paperwork to show the money is inherited. The best way
to get the money here is to ask the bank in Brazil to do a wire transfer to
your US bank account. So be sure you have your check book with you - and the
address and phone number of the bank.
2) What are taxes upon entering with this money?
None
Of course, if you bring in cash, you'll have to declare it at Customs. But...that's
a whole different issue.
3) IRS taxes? 4) Inheritance taxes?
Let's combine these two, OK?
None. IRS won't charge you for the inheritance. Once you invest the money,
of course, you're apt to have taxes.
But you didn't ask the critical question - WHAT ARE BRAZIL TAXES?
That, I don't know. But Brazil has some policies about foreigners involved
in business taking money out of the country. I don't know what Brazil's policy
is about inheritance money. You probably will have taxes in Brazil on the
sale of your Dad's home. So, please speak with your father's executor and
have him or her help you.
You'll need help on the Brazil end.
If you end up paying taxes in Brazil, it's possible youmay be able to deduct
them, or take a credit for them on this year's US tax return. Maybe not if
you have no US income from these transactions.
5) Forms? Regulations?
None
6) Best way to invest this? Buy real estate in the US? Other possibilities?
Real estate is always a good idea. You're a mom with kids. Why not find
yourselves a home you can afford, that will go up value over the years?
Ask me later, once you've returned and know how much money you get to keep.
Perhaps I'll have some good ideas then.
My condolences on the death of your father. Sure the money's nice. But Dad
would be better.
Hugs and Best wishes,
Best wishes, Eva Rosenberg, MBA, EA
