@jtax
You seem to be responding to the original taxpayer from 2 months ago.
I don't understand your concern. Under my suggestion that the taxpayer use constructive receipt, the property was received when probate was complete (Jan 2022). Under your argument, property was received when probate was complete (Jan 2022). What's the problem?
As far as I am concerned, US law says the heir receives the stepped up value as of the date of the previous owner's death, in US$ for that day if the property is overseas.
The value and the date are two different concepts. The date in this case determines in which year the 3520 must be filed (since the date of death and the date the transfer was completed occurred in 2 different US tax years. (And in fact, I don't think it makes a material difference in which year the form is filed and I don't think the IRS will really care.) I think the value should be based on the date of death, even if the completion of probate occurs later.
(Consider this situation. John Smith is a rich man with many complicated assets. When he dies, it takes years to settle the estate to the point where the heirs are free to start selling assets and realizing the cash. Many assets have appreciated in that time. Which value will the IRS assess capital gains on, the value on the date of his death, or the value when probate was finally cleared?)
