Discussion:Canadian Inheritance to US Citizen
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Discussion Forum Index --> Tax Questions --> Canadian Inheritance to US Citizen
| 15 August 2006 | |
| I have a client that will be receiving about $400,000 in inheritance from her Mother, who was a Canadian Citizen. As far as I know, since this is an inheritance, it should not have a tax impact to her in the states.
She did, however, mention that her mother's Canadian attorney discussed some kind of "non-residence tax" on inhertance distributed to non-residents of Canada. I would believe that any tax paid on this income should be eligible for a US tax credit under the US/Canada Tax Treaty. Am I missing anything on this? Sandy - feel free to respond. :) | |
| 15 August 2006 | |
| Your client will need to fill out Form 3520 to report the receipt of the inheritance. I assume that none of the property was located in the U.S. If it were, then there may be U.S. estate taxes. It would be a good idea to look at the treaty, but it sounds like you have already done this.
Not sure if any state inheritance taxes would apply. | |
| 16 August 2006 | |
| Mikelim, did the inheritance include any US real estate or US securities? | |
| 16 August 2006 | |
| Riley -
Nope - just canadian securities (bonds). Thanks again for the help! Mike. | |
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