Here's the situation: My mother plans to sell a property in her home country this year, and the proceeds will be gifted to me and my sister, who is also a US taxpayer. The buyer will transfer the funds directly to us, rather than paying my mother first and then having her send the funds. I want to understand what actions I will need to take when I file my 2024 taxes next April.
The total proceeds will be more than $100,000, but when split between me and my sister, each of us will receive less than $100,000. In this scenario, am I expected to file Form 3520? If I have to file Form 3520, based on the instructions I see, I only need to fill out sections 1(a)-1(h) and Part IV. For Part IV, I plan to answer "No" for lines 54 and 55, but "Yes" for line 56, as I am receiving the money from the UK-based buyer and not directly from my mother. Does this approach seem correct?
