A foreign cash and real estate inheritance

[vrflash]

I received foreign cash and a share in a share in a foreign condo as an inheritance. Cash was under $100,000 and the value of my share was about $150,000, depending on the market. The rest of the condo is owned by my brother. The cash remains in the foreign bank and I did not sell my share. Do I need to report this inheritance? Do I need to fill out form 3520?

Thank you

[DavidD66]

Yes, you need to file Form 3520-Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.  You will also need to file Financial Crimes Enforcement Network (FinCEN) Form 114 - Report of Foreign Bank and Financial Accounts (FBAR), and Form 8938, Statement of Specified Foreign Financial Assets. For more information, go to IRS.gov/FBAR. 

[vrflash]

You mentioned Transactions With Foreign Trusts. But I am not dealing with any trusts. I got the inheritance from my parents, not from a trust.

Thank you.

[DaveF1006 · Accepted solution]

A 3520 must be filled out if you receive gifts of more than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests. In this case, the foreign estate is usually placed in a trust so that may be why the term was mentioned in the first place.

In this case, you do have a reporting requirement because you received this from a nonresident alien(s), which happen to be your parents.

@vrflash 

[vrflash]

Thank you. I value of cash is less than $100,000. But with value of the condo share, it would be more. Should I report the value of condo as well? And should I do this one: Beneficial Ownership Information Report (BOIR)?

[DaveF1006 · Accepted solution]

Yes, you will need to report the value of the condo as well. As far as the BOIR, this is usually reported to the Treasury Dept and is filed by a company or organization that reports information about an individual. See this link for more information. If you are the individual that is being reported, you do not need to do anything with the form.

[vrflash]

Thank you.