Foreign European Inheritance.

[Christian Marianecci]

Hello everybody I hope everyone is doing well. I apologize in advance for the lengthy post. I have a few questions as I am new to the game but I have a basic understanding through this great site and finishing the Ultimate Beginners Guide to Real Estate Investing and I wanted some feedback on my strategy if that is ok. So I have inherited an apartment in the center of Rome, Italy a few years ago. I am waiting until end of 2019 to sell it because that is when the lease ends and it will be tenant free making it more valuable from my understanding. From my research of comparable sales and a real estate agent relative in Italy it is currently valued at about 320-350k. I live in Miami where I currently believe it is and will be for some time a sellers market. I am willing to relocate. My strategy is to find a multifamily unit that can use some repairs, nothing too crazy, to find a good deal, fix it, live in a unit ideally with a roommate and rent the other units out. I am looking to get my real estate license next year after I graduate so I can use the best tools to find properties. Does anybody have any experience in selling oversea properties and what that entails bringing the money here to the U.S? My father told me I have to do it in increments or I will be taxed heavily and thus prolonging my strategy.  One question I have is I am not sure if it would be more worth it to use all cash on one multifamily or use my funds to put down payments on two or more multifamily units. Do I have my head on straight? Thank you everyone for your time. 

[Kerry Baird]

You must MUST talk with a CPA.

Over the years, we have sold two properties in England.  They were our owner-occupied residences, that we'd lived in more than 2 years, so the capital gains were excluded.  We watched the pound to dollar rate, and we transferred the funds when the currency was in an advantageous position. 

We also inherited a property. Upon the death of the previous owner, we had the property appraised.  Our CPA told us that the property was "marked to market", which I understand to be that my hubby inherited at a certain value.  That value becomes his basis in the property, so when we sell it, the capital gains will be from this baseline value up to the value when we sell.  I understand, but check with your CPA, that the threshold for inheritance taxes on an inherited property is much higher than a few hundred thousand dollars.  

Between the currency and the inheritance, you have a more complicated situation than most of us deal with.  Once again, check with your CPA for his or her best advice.