Legal Question in Wills and Trusts in France
Inheriting foreign property and paying tax in US
My father recently passed away and left his home
in France to me. I am in the process of paying the
succession tax in France, and am being charged
tax here in the U.S. as well. I don't think I should
have to pay tax twice on the same property. Why
can the U.S. tax me for property in another
country? I have also heard about a type of rebate
that France will supposedly pay me when they
see that I've paid taxes in the U.S. This doesn't
sound right to me either. Can you explain?
Also, does living in Florida give me any type of
exemption on inheritance taxes here? My father
was a resident of Florida, as am I.
thank you
2 Answers from Attorneys
Re: Inheriting foreign property and paying tax in US
Your question is too complex for a simple internet answer. You are dealing with the tax structure of two countries. Sit down with a attorney and c.p.a. to work it out.
Re: Inheriting foreign property and paying tax in US
You ask several questions without providing all relevant information. First, Florida estate tax is based on your Federal estate tax. If you owe no Federal estate tax, you owe no Florida estate (or inheritance) tax. Second, in international taxation, it is common for one taxing jurisdiction (e.g., France) to give you credit for taxes paid in the other taxing jurisdiction (e.g., Florida). Third, you don't indicate whether probate is involved, in which case the Personal Representative would be responsible for these tax issues. Fourth, you or the estate may have income tax issues such as capital gains to pay, in which tax returns may be required for both France and U.S. You are advised to consult with a tax attorney or C.P.A. experienced in international transactions.
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