Questions about filing 3520

[esarnc]

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?

[KrisD15]

If you are only wired 100,000, or less, no reporting is necessary.

If you are wired more than 100,000 and are tasked with splitting the funds between you and your sister, you would need to file Form 3520 and you might also be required to file Form 709 "Gift Tax Return" if you receive the funds and then gift your sister. 

I would also be careful about the buyer paying you directly. 

If the funds come from your mother, it would obviously be a gift and not taxable on your US return. 

If the funds come from the Buyer, it could be considered income. 

I might be overly cautious, but I would advise that the Buyer pays your mom and mom gifts to you. 

[esarnc]

Thank you. l will check my options.