I learned a lot for these posts. I am the primary income tax filer and my spouse is the secondary in our married filing jointly. We both are US residents. My spouse's brother (who is not US resident) sold an inherited foreign property which she has a share of it with other siblings in January this year 2023. The net proceeds from the sales exceeds US$150,000 which was deposited into her foreign bank account (in her name only) and then almost immediately wired to our US bank account. Questions:
1. Based on what I read in your posts here, we only need to put her name on FinCEN114 (FBAR) and form 8938 when we file income tax for tax year 2023 even if we will file jointly on form 1040 next year, correct?
2. I believe we need to report the sales of the inherited foreign on form 8949 to calculate capital gains and then to schedule D, correct?
3. In addition to receiving the sales of foreign property, she also received a cash gift of nearly US$80,000 in January 2023 from her sister who is also not a US resident. Her sister wired the gift directly from her sister's foreign bank account to our US bank account. Do we have to file form 3520 because the total of the two wire transfers is now more than US$100,000 even if the nature of the two transactions is not the same?
Unlike the proceeds from the sales of foreign property, her sister sent gift money from her sister's personal bank account (not from my spouse' foreign bank account). Since it's less than US$100,000, I believe we don't have to report it on Form 3520 even if the total of these two wire transfers (one for sales of property, the other for gift) is more than US$100,000.
