How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Robin D. Your Own Question

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7540
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

My wife received an inheritance in Brazil. When we transfer

Resolved Question:

My wife received an inheritance in Brazil. When we transfer these funds to the USA what documents will The IRS require to prove the money is from Inheritance, the total quantity will be about US$ 150,000 in total.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Robin D :

Hello and thank you for using Just Answer,
The form 3520 would be used to report the inherited money. If the amount is $100,000 or more the Form 3520 is used to report only, it is not taxable.

Robin D :

File Form 3520 separately from your income tax return. The due date for filing Form 3520 is the same as the due date for filing your annual income tax return, including extensions. You file an annual Form 3520 for all reportable foreign gifts and bequests you receive during the taxable year.

Robin D :

Mail Form 3520 to the following address:
Internal Revenue Service Center
P.O. Box 409101
Ogden, Utah 84409

Customer:

Will the IRS REQUIRE ANY DOCUMENTS TO VERIFY THE FUNDS ON FORM 3520

Robin D :

Not with the 3520, she would want to retain any documents from the inheritance for future if asked.

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7540
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

 


We plan to transfer the money from Brazil to our account here at PNC with a friend: We give him Reais in Brazil and he transfers US$ from his account here in the USA to our account at PNC.


 


Would this cause a problem with the IRS here when we report on Form 3520?


 


The official method would be to transfer the funds through the Central Bank of Brazil to the Federal Reserve and to our Bank. This process could take several months in Brazil so we would like to use the first method.

Expert:  Robin D. replied 1 year ago.
The preferred process would not change the reporting. Your account in Brazil is subject to the FBAR and FATCA reporting based on the amount you have in the account, so not forget about that. Basically if you have $10,000 or more in the account you will need to look to FBAR (form 90-22.1) to report the account. This is in addition to reporting the inherited amount on 3520.
I hope you were able to view the answer to the other question about rental you asked me about.
http://www.justanswer.com/tax/7qi7b-next-year-will-receive-us-18-000-rental-income.html

I did not hear back from you on that one.
Customer: replied 1 year ago.

We do not have an account in Brazil. The Inheritance is from selling of a series of Apartments. Currently we are concerned about transferring


US$ 50,000 without going through the Official channels, i.e. Brazil's Central Bank. The question: Would the transfer method have any affect on the reporting here in the US?

Expert:  Robin D. replied 1 year ago.
No, the method of transfer will not matter as to your requirement to report.
If you inherited the property then sold it you will need to report the sale on your US tax return. You would most likely not have Capital Gains tax to pay but there is a big difference (for reporting) when one inherits cash or they inherit property (title changed to their name) and then sale.
Customer: replied 1 year ago.

the property was sold by the Estate and we received the Cash from the estate, no property, no bank accounts.


The question is: Would the method of transferring the funds from Brazil to the USA create a problem with the IRS when we report the Inhertance on form 3520?


 


 

Expert:  Robin D. replied 1 year ago.
No, the method would not be a problem. You would still report the inheritance on form 3520 even if you use a friend for transfer.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.