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 |