Legal Question in Business Law in California

Inheriting a foreign business

My father, not a resident of the US, passed away in Oct 2004 and left me his partnership share of the business (two other partners). I am a US citizen residing in the US. My questions are:

Are the profits of the business for 2004 part of his estate?

Are the profits of the business until his death part of his estate and only the portion between Oct and Dec taxable to me?

The paperwork to transfer the shares to me was completed only in March 2005. Do I have to fill in Form 5471 with my 2004 tax return as a partner in a foreign business?

Thanks.


Asked on 4/02/05, 4:39 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Inheriting a foreign business

The extent to which the business and its profits are part of the estate depends upon where your father's will was probated. If he lived in another country and wrote his will there, then that country's laws apply and California's do not.

Your questions about taxation really belong in the Tax and Taxation category. I suggest re-submitting your question there. You might also want to submit it under Probate, Trusts, Wills and Estates.

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Answered on 4/02/05, 4:58 pm


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