Do I report inherited foreign property (vacant land and a building) from my father who was a US citizen, and I'm a US citizen?

[Abusweid]

I'm a US citizen and inherited foreign property outside the US after my father passed away. My father was a US citizen as well. The property consists of a vacant land worth $1 million, and a house worth $56,000. Do I need to file any forms when I file my 2015 tax return?

[Abusweid]

There was never an Estate return filed for my father after he passed away. Does that have any implications? Also, what is form 3520 and does it apply in this case?

[LeeM · Accepted solution]

No, you would not have to report it on your return. It should have been included with your father's estate return.

You would only need to report foreign accounts (cash, etc) as per the instructions in the below FAQ on Report on Foreign Bank and Financial Accounts:

https://ttlc.intuit.com/replies/3301591

[Abusweid]

There was never an Estate return filed for my father. Does that have any implications? Also, what is form 3520 and does it apply in this case?

[LeeM]

Form 3520 is for reporting transactions with foreign trusts or persons. You can review information about that form at the website  <a rel="nofollow" target="_blank" href="https://www.irs.gov/uac/About-Form-3520">https://www.irs.gov/uac/About-Form-3520</a>

I would look into an estate return. It may be necessary to file an estate return for your father. You can review the IRS information on Estate Tax returns at the website: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p559.pdf">https://www.irs.gov/pub/irs-pdf/p559.pdf</a>