Form 3520 Real Estate Inheritance

Forum|Forum|2 years ago
March 31, 2024
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My question is regarding the year i need to put foreign inherited property on form 3520.

My mother who lived abroad passed away late 2023. My siblings and I are on the will to inherit her home equally. At this point nothing has been done to physically put the property in our name, no change of title, property taxes etc. Everything is currently still in her name as we were still getting documents ready to start the process of getting it transferred. We also don't have a fair market value as no appraisal has yet been done either, but it will be higher than the $100000 threshold for reporting.

Does the property need to be shown on the 2023 Form 3520 or when we actually have the property distributed in our name?

Than you in advance.

SusanY1

Level 15

Generally, you report the receipt of the property when the transfer is made. However, this isn't always as straightforward as it may seem when it comes to distributions from estates.

Local law dictates when you have technical ownership rights to the property. In some cases, this is the date of death of the decedent. In other cases, it is not until you have the title to the property.

If you're in doubt, file the form for 2023 with your best guess as to the value of your share of the property to be received, and then file again when you have more definite information. It's better to report this twice than to risk penalties for late filing.

For gifts and inheritances, you complete the first part of the form through line 1k and then skip to Part IV on page 6. Be sure to sign and date the form before mailing to:

Internal Revenue Service

P.O. Box 409101

Odgen, UT 84409

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