Inherited Foreign Property in 2021 from US citizen. Do I need to report it to IRS?

[vk29]

Me and my son inherited a house from my husband in a foreign country. It was not generating any income. Do I need to report it to IRS?

[SusanY1]

Maybe.  If the value of your share or your son's share plus any other foreign assets exceeds $100,000 you should report the inheritance on Form 3520.  However, that form would have been due in 2021 when the assets were inherited.  

If the value of your foreign-inherited assets meets that threshold, I suggest finding a specialist in foreign tax matters near you to discuss options for late disclosure to avoid or minimize late filing penalties.  

Note that the value is separate for you and your son so if the property itself was worth $150,000 but you each inherited half ($75,000) and there were no other foreign assets you would not be required to file the form.  

There is not anything require to be filed related to the property on your income tax return in TurboTax when it is not a rental and hasn't been sold.  

[vk29]

Thanks for the answer. The value for each of us was more than $100,000.

But Form 3520 has this section 'Part IV—U.S. Recipients of Gifts or Bequests Received During the Current Tax'. The way I understood it, property was neither a gift nor a Bequest. It was inheritance.  Also property was not in a trust.

[SusanY1]

A bequest is an inheritance for the purposes of the Form 3520.  (In some contexts the words aren't synonymous but here they are).   

However, as I re-read your initial statement I realize that I am not clear on the point of whether your husband was a non-US person in another country or only the property is in another country. 

Inheritances from a nonresident alien or foreign estate exceeding $100,000 must be reported on Form 3520.  If your husband was a US citizen, resident alien, or tax resident (who just held some foreign property as an asset), then the form may not be required. 

A trust isn't required for this form to apply - it applies to all assets inherited from non-US persons that exceed the reportable amount.