@vrflash , agreeing with @Anonymous_ , that the sale of partial ownership ( share ) of realestate is a sale of capital asset to a related party .
(A) You report this just like disposition of capital asset in the USA ---
1. type of acquisition ( inheritance ),,
2. acquired date ( when actually ownership was affected i.e. transferred by the estate of the demised ),
3. basis ( FMV of the asset /share on the date of death of the decedent plus cost of any improvements LESS any allowable depreciation iff used as income generator in the meantime )
4. Sales Proceeds ( FMV at the time sale/ transfer to the relative ) LESS any sales expenses and transfer taxes etc..
5. The gain is taxable ( ordinary ). Losses are not recognizable because of transfer between related parties.
Your report all this on form 8949 and to schedule -D
( B ) Because this is a inheritance / gifts case from a foreign person / estate/ trust , you also have to report the bequeathal on form 3520 ( assuming g that the cash you were bequeathed is equal or more than US$100,000 -- this is only an informational reporting with no tax consequences.
(C) Because you have a Foreign Bank account and you would have had more than US$ 10,000 sometime during the year , you must report this account details ( for FBAR purposes ) on form 1114 ( ONLY online reporting at www. FinCen.Gov )
(D) From a reading of the US-Israel Tax treaty, there may be tax consequences of the transfer of the ownership ( sale of real estate ) and if any taxes are indeed levied, that tax may be eligible for foreign tax treatment ( credit / deduction).
(E) generally transferring monies to the USA ( Bank to Bank transfer) is not a tax item -- depending on the amount the bank may raise SAR as a routine matter . However if the amount is above a trigger point ( i think it is around US$10 million ) there is US Treasury permission required .
Please also note that FBAR form 114 and form 3520 do not go with your return for the tax year --- see instructions at www.irs.gov
Does this help / answer your question(s) ? Is there more I can do for you.
pk
