Quote:
Originally Posted by 96C220
He's not married. The relative (his father) died in 2006, however between actually inheriting the property (going through the European process etc) , deciding to put it up for sale, waiting for a buyer to surface etc, he's selling it now.
Don't know if that changes anything?
George
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If your friend is a US citizen, there are no taxes to be paid when the money comes in to the US.
Keep in mind a couple of things-
1. He cannot wire the money out of the US later on (say he changes his mind). After the money comes into the US, it becomes subject to US laws (obviously he has to pay taxes on interest it earns, etc etc) but there is no tax to bring it in. If the money comes in then he decides to wire the money out, he might be accused of money laundering.
2. This money that comes in now becomes part of his future estate and will be subject to US estate tax laws. This tax kicks in when your friend dies.
So the bottom line is, no taxes are due NOW. When his kids inherit the money, there might be taxes due if the amount is large enough.
Just make sure 100% that he is an US citizen. That is the key point.