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Returning Member
posted Jun 1, 2019 11:56:01 AM

Question about foreign inheritance in Form 3520

My mother passed away on 2/17/2018 and she was not a U.S resident. I received her inheritance $120,000 on 5/12/2018 via wire transfer and received her inheritance $80,000 on 8/23/2018 via wire transfer. On form 3520, in line 54 table, should I report the 2 time wired money as 1 item (total $200,000), or report the money as 2 items, first one is $120,000 and second one is $80,000? Should I write the date (column a) as the day of my mother passed away, or use the day I received the wired money? How should I describe the inheritance in column b? 

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1 Replies
Alumni
Jun 1, 2019 11:56:03 AM

The IRS instructions on this follow:

"You must aggregate gifts received from related parties.  For example, if you receive $60,000 from nonresident alien A and $50,000 from nonresident alien B, and you know or have reason to know they are related, you must report the gifts because the total is more than $100,000.  Report them in Part IV of Form 3520.  Treat gifts from foreign trusts as trust distributions you report in Part III of Form 3520."

Since obviously the two gifts are from the same person, the "related parties" condition applies.