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Old 04-13-2014, 03:07 AM
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Gift tax on $100k from foreigner?

I have a question regarding gifts. I notice that gifts from non-us citizens is limited to $100,000 per year. But I heard technically the funds have to wired from a foreign account? What if the non-us citizen person has an account in the US and he wires the money there first and gives the gift? Would that still count? Because my boyfriend's parents who are not us residents live in mexico and they want to give me a gift of $100,000 for a wedding but I am afraid of receiving it because if i do get audited the IRS might ask for proof that the giver is a foreigner and not US resident. So I am wondering before I receive the gift should I ask him for his parent's id and info so if i do get audited I can prove that the recipient is not US citizen? Of course I am not sure if my girlfriend's parents would give that info considering it is pretty private which is a different matter.


Last edited by janelee : 04-13-2014 at 03:19 AM. Reason: .


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Old 04-14-2014, 03:02 AM
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Originally Posted by janelee View Post
I have a question regarding gifts. I notice that gifts from non-us citizens is limited to $100,000 per year. But I heard technically the funds have to wired from a foreign account? What if the non-us citizen person has an account in the US and he wires the money there first and gives the gift? Would that still count? Because my boyfriend's parents who are not us residents live in mexico and they want to give me a gift of $100,000 for a wedding but I am afraid of receiving it because if i do get audited the IRS might ask for proof that the giver is a foreigner and not US resident. So I am wondering before I receive the gift should I ask him for his parent's id and info so if i do get audited I can prove that the recipient is not US citizen? Of course I am not sure if my girlfriend's parents would give that info considering it is pretty private which is a different matter.
you can receive as much money as gifts as you want from them in Mexico; you, as a donne, are NOT subject to guft taxes to IRS/state;however, you, as a done in US, must file form 3520 aslongas the amount of the gift from Mexico exceeds $100K. the form is just for info return purposes not to impose any tax to you; Form 3520 is due on the date that your income tax return is due, including extensions. Form 3520 helps the IRS track the flow of money between the United States and other countriesFor example, $120k in foreign gifts received during 2014 need to be reported on IRS Form 3520 on or before April 15, 2015, provided that you have not timely requested an extension to file your 2014 personal income tax return. You may be subject to a penalty equal to 5%, but not to exceed 25%, of the amount of the foreign gift for each month for which failure to report continues. You may also be subject to a penalty if you file IRS Form 3520 but it is incomplete or inaccurate.
Send Form 3520 to the Internal Revenue Service Center, P.O. Box 409101, Ogden, UT 84409.



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Old 04-14-2014, 05:30 AM
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technically

But technically can the foreigner give a gift from a us account or does it have to be wired in from a foreign account?



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Old 04-14-2014, 05:41 AM
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Originally Posted by janelee View Post
But technically can the foreigner give a gift from a us account or does it have to be wired in from a foreign account?
either one of them;even if the foreiger keeps bank acct in us and earns interest income from the acct in US he/she doesn't need to pay tax on the int incoem to irs/state



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