Reporting gifts and inheritances from India
Form 3520 for gifts or inheritances of more than $100,000 from parents or relatives abroad.
A gift or inheritance from a person outside the US is generally not taxed in the US. But if you receive more than $100,000 from a foreign person in a year, you must report it on Form 3520.
The penalty for filing late is steep: 5% of the amount for each month, up to 25%. People often miss this form because no tax is due.
What this covers
- Working out whether your gifts for the year cross the $100,000 threshold.
- Preparing Form 3520.
- Reporting the accounts the money came through on your FBAR and Form 8938.
- The tax basis of inherited property, for when you sell it later.
How it works
Email us what you need and a rough picture of your income and accounts. We reply with a quote and a list of documents. Nothing is filed until you have reviewed and approved it.
Read our edition on selling an inherited flat →
Common questions
Generally not. But if you receive more than $100,000 from a foreign person in a year, you must report it on Form 3520.
5% of the amount for each month, up to 25%. People often miss this form because no tax is due.