Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-12-2013, 12:59 PM
Junior Member
 
Join Date: Oct 2013
Posts: 1
Exclamation Foreign Gift (India to US)

I am an U.S. citizen planning to purchase an apartment in the U.S. for approximately $250-350k in the next 6-months to 1-year. My grandparents who reside in India as Indian citizens have agreed to provide me with 20% ($50-70k) of the cost as a down payment to secure a mortgage.

Basically, I would like to understand the tax implications of this transactions from my perspective as well as my grandparents. I want to limit the tax liability for both parties in India as well as the US. Who will be taxed and approximately how much? Are there ways to minimize the tax liability? I know there is a $13k maximum tax-free gift in the U.S. per donor to recipient. As an example, would we be able to minimize the overall tax liability for all parties if my grandma/grandpa send me $20k, my aunt/uncle send me $20k, and my cousin/spouse sends me $20k (Basically $10k/person)?

I obviously plan to consult a tax advisor when the time approaches, but wanted to research the subject on my own beforehand. Thanks in advance and I look forward to hearing from you soon.

[TAGS] India, International, US, Gift, Tax, Real Estate, Donor, Recipient



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 10-13-2013, 03:13 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by indus View Post

#1;Basically, I would like to understand the tax implications of this transactions from my perspective as well as my grandparents. I want to limit the tax liability for both parties in India as well as the US. Who will be taxed and approximately how much?



#2;Are there ways to minimize the tax liability?
I know there is a $13k maximum tax-free gift in the U.S. per donor to recipient. As an example, would we be able to minimize the overall tax liability for all parties if my grandma/grandpa send me $20k, my aunt/uncle send me $20k, and my cousin/spouse sends me $20k (Basically $10k/person)?

#1;As long as you receive $50K~$70K from your GPs in India, your GPs in India, as they are Non-US residents, don’t need to pay any US tax on their gifts(perhaps your GPs in India may need to pay some tax(es) to Indian taxing authority(ies) on their gifts for you. They need to check it with Indian taxing authorities).You also , as a donee, do not need to pay any tax on the gift from India. In general,in the US, the donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. However, this is not your case since your GPs in India are NOT subject to US gift tax. You also do not need to file form 3520 UNLESS the amount of the gift from India exceeds $100K per year.


#2; As mentioned above, a $13k($14K for 2013 as far as I know) maximum tax-free gift in the U.S. per donor to recipient is for a gift between US residents/citizens. All US individuals have the opportunity to give gifts annually to any person without having to file a gift tax return.



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
  #3 (permalink)  
Old 12-08-2014, 05:58 PM
Junior Member
 
Join Date: Nov 2014
Location: USA
Posts: 1
Christmas day

Prompt me please, what to do in Waco on Ñhristmas day?



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
Spouse is in India, can I still file as married filling jointly rocky Income 10 01-05-2018 09:59 PM
gift tax alessandra Miscellaneous 1 07-12-2013 05:48 AM
How does a Partnership pay the Foreign Withholding Taxes attributable to Foreign Partners? TaxGuru Limited Liability Company 0 05-06-2013 02:47 PM
stock as a gift abbottstownkid Miscellaneous 2 04-10-2012 11:43 AM
Can I take foreign tax credit or deduct taxes paid on foreign investments in IRA? jswift IRA/Sep 0 02-14-2010 02:03 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
 
 
 

» Recent Tax Q&A
No Threads to Display.