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USTaxAdvising
USTaxAdvising , Accountant
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I have a client who is a US resident and received a gift from

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I have a client who is a US resident and received a gift from her sister who is not a US resident. These funds were wired into her US bank account. My client is concerned as to whether or not she has to report this gift. I think not since the responsibility of gift tax belongs to the person giving the gift. In this case; wouldn't it be the responsibility of the sister to deal with her country's gift tax rules.
Submitted: 2 years ago.
Category: Finance
Expert:  USTaxAdvising replied 2 years ago.

USTaxAdvising :

Generally you are correct.

USTaxAdvising :

But if the amount was in excess of 100K then the amount would need to be reported on Form 3520 Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.

USTaxAdvising :

See the instructions, page 1, number 4.

USTaxAdvising :

Note that if the gift was from a foreign corporation or partnership the threshold is 14,723, not 100K.

USTaxAdvising :

Best regards,

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