Finance Questions? Ask a Financial Expert for Answers ASAP
Thank you for your question, and thanks for using JustAnswer.com
Your parents can gift you an unlimited amount.
You will not have to pay tax no matter how large the gift is.
However, you will have to declare the gift on form 3520 if it is greater than $100,000
does that mean that as long as money is coming from abroad, (and it is not my income), it is not taxable?
You can get the gift any time you want, as many times as you want and there's no tax. But if your gifts total over $100,000 then you just have to report it
Gifts are never taxable, no matter where they come from
under $100,000 for one gift, or for the sum of them over a certain period of time>
The sum over a year's time
so just to make sure: if it is under $100,000 and if it is over one year time, then it is not taxable, neither do I have to declare it. It means I have to do nothing and pay nothing. correct?
That is correct. If it is under 100,000 you do nothing and pay nothing
wow. That is unexpected. And can you shortly tell me why not everybody is using this loophole not to pay taxes on assets / income outside of the USA (as anybody could have given it to them, and the IRS has no info on foreign transactions)?
it's just that it sounds almost too good to be true.
Well, if you earn the income it is taxed to you. A gift is where someone else earned the income, paid the taxes, then gave it to you
yes, but paid the taxes not to the USA, while the money is somehow arriving in the USA. But well, I'll rely on your opinion, and that's some god news :)
I gave you a link that says what I just said, from the IRS
thanks a lot
I'm reading it. Thank you for your clear and comprehensive answer