Hi all, I was just wondering about something.
I was told that inheritance money is not applicable for the 30M tax exemption if it is foreign sourced, is this true?
The hypothetical scenario of concern is like this.
A parent and a child each have 12M and pool their money together to buy a house for 24M with 50/50 ownership as stated on the deed.
Parent is a foreign national with no SOR and their 12M equivalent money comes from overseas.
The child is a Japanese resident and their 12M is in a Japanese bank.
Normally I would assume that if the parent passes away, their 50% ownership can be transferred to the child and the up to 30M inheritance exemption could be used to prevent a gift tax from being levied on the passed away parent’s 50% share even if it was purchased with overseas funds. Is my assumption wrong?
by c00750ny3h