Hi there, I have a friend whose mom who lives out of the country (Brazil) and is going to be making a $100k payment as a gift to my friends mortgage loan (lives in Nevada). We were thinking the best way to accomplish this is for her mom to just wire the 100k payment directly to her mortgage company. What, if any tax liabilities are there for this?=========> The IRS never requires recipients to pay tax on gifts received but he needs to file form 3520 with the IRS aslong as he is a U.S. person who, during the current tax year, received MORE THAN $100k from a nonresident alien individual , his mother in Brazil. Form 3520 is a reporting requirement ,not a tax. The IRS doesn't want your money, but would like to know exactly where your money is! Form 3520 is due on the date your income tax return is due (including extensions). There are stiff penalties that can be imposed on you if you do not file, or if the information in incomplete or incorrect. BUT! For the penalties to be imposed, the IRS must prove that the failure to comply was willful neglect. You must be able to demonstrate that the failure to comply was due to reasonable cause.The initial penalty for willfully not filing your Form 3520 is equal to the greater of $10k or 35% of the gross value of the property transferred or distributions received
If there are any for receiving a large gift like this what is the best way to mitigate the amount of taxes owed?=====>as mentioned above.no Tax due on the gift for your buddy.