Thanks for the help!
If I understand this form 3520 right my inheritance would fall under section IV "U.S. Recipients of Gifts or Bequests Received During the Current Tax Year From Foreign Persons". Line 54 there states the following:
During your current tax year, did you receive more than $100,000 that you treated as gifts or bequests from a nonresident alien (including a distribution received from a domestic trust treated as owned by a foreign person) or a foreign estate?
- What does "receive" mean here? Does it mean (A) transferring some amount from the inheritance (currently in the foreign bank account, not managed by me) to my US account, or (B) have I already "received" these funds the moment my relative passed and my name was uncovered in their will?
- What happens if the answer to Line 54 is YES, vs. if the answer is NO? Is this again just for reporting or will I pay US taxes on any part of this inheritance in any of the two cases? If I am not mistaken that inheritance is already taxed in the foreign country, hence being taxed twice doesn't seem right, thinking of it.
