Form 3520 question

[danhui_li]

Hello,

I have a question regarding form 3520. In year 2023 I received gift from my foreign relatives and the total amount is $150K. The money was wired directly to my own bank account. In year 2023 my husband also received $35K from his foreign relative and the money went to his own bank account but then he transferred  $35K to our joint bank account. My husband and I file jointly tax return 2023.

Here are my questions:

1. For the $150K portion, I'm the only beneficiary. But for the $35K portion, I think both my husband and I are beneficiary as the money went to our joint bank account. In this situation, should I file 3520 separately and report $150K gift, or should I file 3520 jointly and report $185K gift, or should I file 3520 separately with $150K, and file another 3520 jointly with my husband with $35K?

2. How to fill line 1a, d, i according to answers of question 1?

Thank you!

[SusanY1]

For Form 3520, the thresholds and the filings for foreign inheritances and gifts are done on an individual basis, even if you file a joint tax return.  (The rule is different when spouses filing a joint return receive distributions from the same foreign trust but it doesn't seem that applies in your case.) 

Since you will be filing individually, you do not need to fill in your spouse's name in 1a or SSN in 1d.  

In your case, your husband's gift is below the threshold required to file the form.  Since he received it directly before commingling the asset in your joint accounts, neither of you are required to report it. 

His gift was from a foreign individual but then his transfer to your joint account would not be, so it is not required to be reported on this form.   

 

[danhui_li]

much appreciate it!