topic Form 3520 in Deductions & credits

Form 3520

JFS0409 — Tue, 10 Feb 2026 10:06:41 GMT

I am confused with the filing of the form 3520. I have received a property in exchange for taking care for my parent living abroad. In 2018 the value of the property was less than $100K. So at that time I did not report it to the IRS form 3520, as the value was less than required. I have kept the said property until my parent passed away (parent was living there until death). I have used this property for vacation purposes for more than 5 years, the time which is required by the foreign law to keep it or pay sale tax. This year I will be selling the property for slightly more than 100K. Do I report this as a gift in the next tax year?

My logic tells me that I have received a property of lesser value at the time of transfer. So I believe I do not have to report it to the IRS but wanted to make sure. Please help!

Re: Form 3520

MarilynG1 — Wed, 17 Jan 2024 01:26:40 GMT

If you have an appraisal (or other documentation) of the property as being under 100K in value when it was gifted to you, you don't need to file Form 3520.

Here's IRS Instructions for Form 3520.

In TurboTax, here's How to Enter Sale of Second Home, Inherited Home or Land.

Re: Form 3520

pk — Wed, 17 Jan 2024 03:34:39 GMT

@JFS0409 , while generally agreeing with the excellent reply from @MarilynG1 , if this was a transfer from a foreign individual ( NRA), the basis of the property for you is still the basis of the donor -- so while FMV may impact the 3520 regs , the sale and profit/loss is based on the donor's basis at the time of the gift. Generally 3520 is dealing with cash gifts from international donors.

Re: Form 3520

JFS0409 — Wed, 17 Jan 2024 04:21:22 GMT

Thank you for your comment, I truly appreciate it. I feel way better when some second opinions are laid on the table, as anyone can and should make decisions based on best information and facts. Decisions truly affect any human being involved for decades to come. Thank you once again.

Re: Form 3520

JFS0409 — Wed, 17 Jan 2024 04:22:51 GMT

Thank you so very much for your input. You do not even realize how much I truly appreciate it. May God Bless you!