Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-11-2014, 03:17 PM
Junior Member
 
Join Date: Mar 2014
Posts: 1
Gift - from non US resident - limit / tax

Hello there,
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.

Regards,
Deva



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-11-2014, 06:43 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,139
Quote:
Originally Posted by Deva View Post
Hello there,
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.

Regards,
Deva
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
or:
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax Preparation Fees Limit justr8hr Itemized Deductions 1 10-19-2013 12:15 PM
Depreciation limit: how about >$999.00 Section19 C-Corporation 0 03-09-2009 05:07 PM
What is the Special 30% Limit for Capital Gain Property made to 50% Limit Org's?. TaxGuru Itemized Deductions 0 07-09-2008 11:35 AM
Which Organizations qualify for the 30% Limit on AGI? TaxGuru Itemized Deductions 0 07-09-2008 11:22 AM
Which Organizations qualify for the 50% Limit on AGI? TaxGuru Itemized Deductions 0 07-09-2008 11:17 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning