My wife's mother is neither a U.S. citizen nor a resident alien, so she is a non-resident alien, am I right?
The following statements are from the internet.
1. "A NRA is subject to the U.S. gift tax only on a gift of real property or tangible
personal property situated in the U.S. at the time of the gift. The gift tax provisions
applicable to NRAs are found in sections 2501(a)(2) and (3), (b) and (c), and
2. "is there any risk of gift tax?" Yes.
"Is there any way the U.S. dollars located in foreign account could be deemed to be 'situated in the U.S.'?" Yes. It can be argued that the "gift" did not occur until
received. Receipt occurred in the U.S. Thus, it can be argued that the property was situated in the U.S. when the gift occurred. The IRS may argue that the receipt of
the funds was tangible, rather than intangible, property. See GCM 34845.
3. "The receipt of a gift is generally not "income." To the extent, however, that U.S. gift taxes are due and unpaid by a donor, they may be assessed against the recipients of the gifts. Under legislation signed in August of 1996, we now require that a U.S. donee of gifts aggregating more than $100,000 in any one year from a foreign person file an information report by the due date of the donee's U.S. personal income tax return year of the gift. Form 3520 has been revised to serve as the required report and may be obtained from our website (www.irs.gov) or from any IRS Forms Distribution Center. "
What I am concerned is if (2) is true, and then I’d have to pay the tax based on (3).
Could you please verify whether wire-transferred money from non-U.S. account to U.S. account is U.S. situs or not?