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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 14005
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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my parents (foreign national, non-residents) are planning to

Resolved Question:

my parents (foreign national, non-residents) are planning to make me a gift in cash. What is the maximum non-taxable amount that I can receive (without paying taxes on it, obviously) and how often can it be renewed? Do I have to declare this to the IRS ? Thanks
Submitted: 11 months ago.
Category: Finance
Expert:  Megan C replied 11 months ago.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

Your parents can gift you an unlimited amount.

Megan C :

You will not have to pay tax no matter how large the gift is.

Megan C :

However, you will have to declare the gift on form 3520 if it is greater than $100,000

Customer:

does that mean that as long as money is coming from abroad, (and it is not my income), it is not taxable?

Megan C :

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

Megan C :

Gifts are never taxable, no matter where they come from

Customer:

under $100,000 for one gift, or for the sum of them over a certain period of time>

Megan C :

The sum over a year's time

Customer:

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?

Megan C :

That is correct. If it is under 100,000 you do nothing and pay nothing

Customer:

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)?

Customer:

it's just that it sounds almost too good to be true.

Megan C :

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

Megan C :

CLICK HERE

Customer:

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 :)

Customer:

thanks

Megan C :

I gave you a link that says what I just said, from the IRS

Customer:

thanks a lot

Megan C :

You're welcome

Customer:

I'm reading it. Thank you for your clear and comprehensive answer

Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 14005
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 2 other Finance Specialists are ready to help you
Expert:  Megan C replied 11 months ago.
Thanks, Damien for your positive rating. Please come back and visit me any time you have a question that needs answered. It was a pleasure working with you today.

Thanks again!

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