Hello experts have a few questions and looking for guidance.
Y2023
Mother died leaving her rental property without a registered will
My siblings agreed to settle the property to me and started the registration process
I started collecting rent in my account.
Y2024
Property officially registered in my name..it was a long process overseas.
Question
1. Is 3520 due the year (2023) when she died or when the property was officially registered to me (2024)
2. In 3520 do I report the FMV on her death date or the date when the sibling settlement was registered? Is this the cost basis for depreciation calculation?
3. I am reporting the rental income in 2023 as I was receiving it in my account even though the official property transfer occurred only in 2024. Is that fine?
@Rsvp2024 , while it may not be that important, I would :
(a) file form 3520 for the year 2023 -- because it is effectively a beneficial ownership , you collected rent, behaved as if it is yours and lastly your siblings ( other inheritors behaved as if it is yours ). Note that TurboTax does not support form 3520 --- please download from www.irs.gov, fill, sign, date and mail-in to address shown on the instructions.
(b) Note that the your basis in the property ( by inheritance ) is the FMV of the asset on the date of passing of the decedent.
(c) You will need to recognize the income nature of the property by filing schedule-E and depreciation based on the Asset value ( non-land portion) -- depreciable value.
(d) if you own or have signature authority over any foreign accounts you do come under FBAR ( form 114 at FinCen.gov, only on-line filing ) and FATCA regs.
Is there more I can do for you ?
@Rsvp2024 , valuation at Mom's death but 3520 date would be the settlement date .
Does this make sense ?
@Rsvp2024 , while it may not be that important, I would :
(a) file form 3520 for the year 2023 -- because it is effectively a beneficial ownership , you collected rent, behaved as if it is yours and lastly your siblings ( other inheritors behaved as if it is yours ). Note that TurboTax does not support form 3520 --- please download from www.irs.gov, fill, sign, date and mail-in to address shown on the instructions.
(b) Note that the your basis in the property ( by inheritance ) is the FMV of the asset on the date of passing of the decedent.
(c) You will need to recognize the income nature of the property by filing schedule-E and depreciation based on the Asset value ( non-land portion) -- depreciable value.
(d) if you own or have signature authority over any foreign accounts you do come under FBAR ( form 114 at FinCen.gov, only on-line filing ) and FATCA regs.
Is there more I can do for you ?
@pk Thank you for the prompt response and for the detailed answers.
Hypothetically speaking, if I filed 3520 in 2024, would the date of bequest be mom's date of death in 2023 or the sibling settlement date in 2024?
Truly appreciate your service to this community.
@Rsvp2024 , valuation at Mom's death but 3520 date would be the settlement date .
Does this make sense ?