Hello,
I have few questions about reporting related to inheritance and foreign bank accounts.
I am a married US citizen and my father is not a US resident.
Last year, I inherited several bank accounts (2 checking and 5 savings, total value $400,000 exceeds US $150000) and vacant lands (mountains, value $600,000 also exceeds US $150,000).
From what I understand, it appears that I need to file
- form 3520 to inform the total amount of gift
- Fincen 114 to report the foreign bank accounts since total value exceeds $10,000 reporting threshold
- In my tax return, fill out form 8938 since total financial asset value exceeds the reporting threshold of $150,000
I have few questions related to each of the forms.
Q1: (Form 3520) I believe I need to fill in only Part IV, is this correct?
Q2: (Form 3520) How should I fill in 54(b) Description of property received? Is following enough or does it need to be in more detail (for example, listing account numbers etc.)?
Bank accounts (2 checking and 5 savings) inherited from father (not a US citizen or resident)
Vacant lands (about 13.6 acres of mountain in XX province in YY country)
Q3: (form 3520) 54(C), FMV of property. Specifically for bank accounts.
I had a sibling that I had to split and wire her portion out of the inherited bank accounts. In that case, should I exclude her share from FMV? I also had to pay significant amount of tax (unlike US, inheritance is heavily taxed there) related to this inheritance. Should I deduct the tax and other costs related to the inheritance?
Q4: (Fincen 114) The accounts inherited were total 7 as described but the same day, I closed most of them and consolidated to two accounts. Should I report all the accounts including the closed ones or only the remaining ones. If I report all including the closed ones, maximum value sort of gets close to doubled so wasn’t sure.
Q5: (form 8938) I had foreign bank accounts that did not require form 8938 submission before but now I do because of inheritance. In that case, do I report the account not related to this inheritance in Part I and Part V?
Thank you for your help.
