CASH INHERITANCE FROM U.S.A.

NUTLEY BOY

What are the tax implications in the following scenario ;

D, an American resident dies.

D leaves a substantial cash bequest to B.

D and B are sister-in-law and brother-in-law respectively.

B is an Irish citizen/resident/taxpayer.

Q 1. As I understand it B has no INCOME TAX liability. Is this correct ?

Q 2. Does B have a liability to a capital tax ?

As best as I can figure it out, B should have a liability to Gift / Inheritance tax as the inheritance seems to well exceed the CATERGORY C threshold. Is this right ?

Q 3. If there is a liability I take it to be at the rate of 25% of the excess above the CATERGORY C threshold. Is this right ?

I would appreciate any information as I am not clear from the Revenue site if my understanding is correct. Many thanks.

wishful thinker

NUTLEY BOY wrote: »

What are the tax implications in the following scenario ;

D, an American resident dies.

D leaves a substantial cash bequest to B.

D and B are sister-in-law and brother-in-law respectively.

B is an Irish citizen/resident/taxpayer.

Q 1. As I understand it B has no INCOME TAX liability. Is this correct ?

Q 2. Does B have a liability to a capital tax ?

As best as I can figure it out, B should have a liability to Gift / Inheritance tax as the inheritance seems to well exceed the CATERGORY C threshold. Is this right ?

Q 3. If there is a liability I take it to be at the rate of 25% of the excess above the CATERGORY C threshold. Is this right ?

I would appreciate any information as I am not clear from the Revenue site if my understanding is correct. Many thanks.

you are correct - no IT is due

with regards the other.....simply if

1. the person who bequethes the inheritance is resident in ROI
2. or the person who benefits from inheritance is resident in ROI
3. or the asset is situated in ROI

then the beneficiary is subject to CAT aka inheritance tax

The regulations on filing forms for Revenue have now changed and are inline with Income Tax deadlines.

The tax is based on a calculation taking into account the value of the asset received, relationship between the people, if prior inheritances were received within the same category

NUTLEY BOY

Much obliged.

Mr. Incognito

Taxed in the US by the administrator.

Double taxation treaty wipes out any irish liability as a result.