If you receive a gift or inheritance from a foreign person (nonresident alien) or from a foreign estate and the total amount during the year exceeds $100,000, you are required to report the gift on Form 3520.
The corpus value of an inheritance is not taxable. There is a possibility that 100% of the inheritance is corpus. If you receive a foreign inheritance payment that includes some portion of income, that income generally would be taxable in the US. If you received $101,000 ($100,000 from corpus and $1,000 from interest) from the decedent's estate, $1,000 would be taxable in the US. An exception would be if there was some treaty that would exclude that income.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
