@ParkNYC , having gone through the original post and the answer , I agree with @Opus 17 that :
(a) the fair market value of the real-estate and any other non-cash assets received as part of the inheritance by a US person ( Citizen/Green Card / Resident ) on the date of the demise of the decedent or on an alternate date shortly thereafter is the BASIS of the asset(s) for the recipient/inheritor.
(b) any gain in disposing these assets would generally be treated as long-term / Capital gain and taxes as such. Hence a proper valuation for purposes of establishing basis is a very good idea
(c) Form 3520 needs to be filed as part of the return for the year in which the inherited assets were constructively received e.g. in case of realestate, it is the date on which the property was transferred to you , not necessarily the date on which the title is registered and returned to you ( e.g. in Mexico it is the date on which the Contrato de Venda is signed, and funds exchanged --- in front of a notario ---not when actual escritura -- "title" -- is registered and returned to the buyer -- think it is often the case in many countries )
(d) FBAR filing is separate from the return and is due by June 15 the following and done as on line filing at FinCen.gov for form 114 -- this will take you to bsa-efiling site which operates the facility.
(e) Additionally there is NO tax impact of the inheritance itself and therefore there is no foreign tax credit eligibility ( if the foreign taxing authority taxes the transfer of ownership from the decedent to the inheritor ). In case of disposal of assets resulting in gain, this taxed by the US ( Fed and State ) and if taxed by the foreign taxing authority, eligible for foreign tax credit.
Thank you @Opus 17 -- it was a very good answer
