Originally Posted by Deva
I am a US resident. My dad is a non US resident (doesn't live/work in US), hence doesn't file US tax returns. He has a non-resident bank account here in US. He is planning to gift me money through his US bank check.
I would like to know whether there is any limit on how much he (a non-resident) can gift me through a check (US bank check) in a calender year?
If so, are there any tax implications for him in US if he exceeds the limit even though he doesn't reside/work in US?
Thank you for your time and help.
he can give you as much money a he wants as a gift however, aslongas the amount that you receive from him as a gift exceeds $100K a year, then, you need to file info return, Form 3520. you as a recipient do not pay any tax on it aslongas you file Form 3520. your fahter is NOT subject to US gift tsax as he i snot subject to US taxes.
He doesn't need to file form 709 even if the amount of gift exceeds $14K for 2014. in general, Form 3520 is due on the date that your income tax
return is due, including extensions.
if Form 3520 is
not timely filed or if the information is incomplete or incorrect.
Generally, the initial penalty is equal to the greater of $10K
5% of the gross value of the portion of the trust's assets
treated as owned by a U.S. person for failure by the U.S.
person to report the U.S. owner information.
Additional penalties will be imposed if the noncompliance
continues after the IRS mails a notice of failure to comply with
the required reporting. . No penalties will be imposed if the
taxpayer can demonstrate that the failure to comply was due
to reasonable cause and not willful neglect.