@ppttcomm23 , just to make sure that I have got the facts of the situation correct, let me first articulate my understanding ( please correct me if need be ) thereof:
(a) You and your spouse are US persons ( citizen/ GreenCard / Resident for Tax purposes ) and your tax home is US
(b) Spouse has a foreign account in home country ( where? ) in her name ONLY and you both have at least one joint bank account in the USA
(c) Spouse owned jointly property acquired through inheritance ( which country , what was Fair Market Value at the time of death of decedent , when was the passing of the decedent and how was the property held thereafter -- within the Estate till disposal or registered in the name of the inheritors ? ).
(d) This inherited property was sold in 2023 and the proceeds distributed to the inheritors. ( what happened to the property in the meantime -- rented out or what ? ). Spouse's share of the distribution was US$150,000 and deposited in her Local/ foreign bank account. It was then trasnferred to the joint account in the USA.
(e) The spouse also received a gift of $80,000 from a Non-Resident Alien Additionally the decedent was also a Non Resident Alien.
Now the questions is how to report these transactions to the US taxing authorities.
Assuming that the inherited property was held within the Estate of the decedent, till disposal / sale , then form 3520 is sufficient to report the "cash" inheritance ( US$150,000 ) and the "cash" gift of US$80,000. This is not a tax event, just recognizing / reporting the receipt of foreign cash benefits.
On the other hand , if the inherited property ownership was jointly or individually held by the inheritors then the sale needs to be recognized . Thus ,and assuming that the property was not used as income property in the mean time, the sale must be recognized on form 8949 ( with a Basis of allocated FMV at the time of passing of the decedent ) and on to Schedule-D. TurboTax will do the needful .
In this second case the form 3520 is really optional because the US$80,000 gift is under the required threshold.
Because the monies rested in a foreign bank account owned by the spouse, FBAR ( form 114 at FinCen.gov ) is required to be filed. Additionally you may need to file FATCA form 8938 because monies above the threshold (for individual owner of foreign bank account) . Note that these forms ( FBAR and FATCA ) do not result in additional taxes -- just informational . My view is when near the threshold, just go ahead and file the forms ( to be safe ).
Also note that for each of the transactions in local currency , you should use the exchnage rate of the day ( from the bank or local sellers/ finacial institutions.
Hope this answers your question. Is there more i can do for you ?
pk
