Tax on gift money from parents abroad

golf2000 · #1 (**permalink**) 01-28-2014, 05:48 PM

Hi. Is the (gift) money that I receive from my parents subject to income or any other tax? Does the “receiving method” (i.e. wire transfer versus check versus cash, etc.) make any difference? (My parents live outside the US and aren’t either US citizen or US resident alien.) Thank you.

Wnhough · #2 (**permalink**) 01-29-2014, 07:50 AM

Quote:

Originally Posted by golf2000

Hi.

#1;Is the (gift) money that I receive from my parents subject to income or any other tax?

#2;Does the “receiving method” (i.e. wire transfer versus check versus cash, etc.) make any difference? (My parents live outside the US and aren’t either US citizen or US resident alien.) Thank you.

#1;No; you, as a donee, are NOT subject to any tax on the gift money that you receive from your parents from abroad

#2;No not at all. however, a US bank receiving money, more than $10K, needs to automatially report it to the Dept of US treasury for info return purposes.

So, you are NOT subject to any US tax(es) on your gift money from abroad.

golf2000 · #3 (**permalink**) 01-29-2014, 09:38 AM

Quote:

Originally Posted by Wnhough

#1;No; you, as a donee, are NOT subject to any tax on the gift money that you receive from your parents from abroad

#2;No not at all. however, a US bank receiving money, more than $10K, needs to automatially report it to the Dept of US treasury for info return purposes.

So, you are NOT subject to any US tax(es) on your gift money from abroad.

As always, you are such a fantastic help! Thank you.