If a family member who lives abroad and is not a US citizen wants to give me a gift of approx $50,000, do I owe taxes on this gift? And how would I report this money on my tax return? If I do not owe taxes, do I still report it? (my husband and I are both US citizens residing in the US)
Optional Information: MassachusettsAlready Tried: searching IRS website
There is no limit on the amounts that can be received by US residents from foreign individuals.
There is no tax on an gift received from a non-resident individual. If the gift is in excess of $100,000, the recipient is required to file an informational form to show where the funds came from. I have included a link to Form 3520 and instructions below.
CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.