First, I am very sorry for your the loss of your father and your mother.
I am not sure your analysis is correct. This topic is very complex with potentially (but perhaps not likely???) large penalties involved. Too complex for a clear answer on an Internet forum. I strongly suggest that you find a tax attorney, CPA, or enrolled agent who regularly deals with form 3520.
Look carefully at the instruction section "Who Must File" in https://www.irs.gov/pub/irs-pdf/i3520.pdf
It says, in part,
4. You are a U.S. person who, during the current tax year, received either:
a. More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests;
The important word here, to me, is "received." Without more research I don't see why received refers only to cash. Most US tax law includes property valued at it's fair-market value. So employers can't give you a free car and pretend it's not compensation.
The legal question would be whether or not, in 2023, you owned (had "received") the real estate or not. You could well be considered the owner as soon as your father passed. This would be the case in many US states. Or you might not be the owner until that form was obtained. I doubt anyone here can answer that.
Note that if you got an extension for your 2023 1040 until October, the 3250 for 2023 would not be due until October. If that's the case, you might want to just file the 3250 for 2023 and be done with it. See "When and Where To File" in the instructions. There are a few more exceptions. Even if late you might want to just file it for 2023 if that is the correct year. But a tax professional who frequently deals with this can advise you on that.
Also, just to avoid any confusion. Your subject says "gift tax." The US federal tax system does not have a tax on gifts received. See https://www.law.cornell.edu/uscode/text/26/102 ...
But there is a tax on gifts GIVEN (above a very high limit). This would not apply if your parents were non-(US)resident aliens. I.e. it only would apply if they were US persons (citizens or green card holders).
The 3520 is not about a gift tax. It is about asset reporting. It is so the US government is on notice that there are foreign assets now owned by a US person and that the US person is therefore more likely to report any income from those assets (rental income, capital gains, dividends, etc.)
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
