Many thanks Merlo.
My wife's mother is neither a US citizen nor a resident alien, so she is a nonresident alien, am I right?
The following statements are from the internet.
"A NRA is subject to the U.S. gift tax only on a gift of real property or tangiblepersonal property situated in the U.S. at the time of the gift. The gift tax provisionsapplicable to NRAs are found in sections 2501(a)(2) and (3), (b) and (c), and2511."
>>". . . 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.
"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 for the 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, then I've to pay the tax based on (3).
Could you please verify whether wire-transferred money from non-US account to US account is US situs or not?
One thing I need to make clear. The money was wire-transferred from mother-in-law's froeign account to my wife's account in last May. The money is in my wife's account now. In this case, was the wire transfer US situs or not?
Several more questions related to Form 3520.
Since the country of my mother-in-law only allows $50,000 wire-transferred to foreign country per person per year, the total $150,000 was in fact wire-transferred by three foreign accounts of my mother-in-law, NRA A and NRA B. But all the money are of my mother-in-law.
1. In Part IV of From 3520, shall I list all of them or only my mother-in-law?
2. If all of them need to be listed, shall I check 'YES' to line 56 of part IV?
3. Shall I fill in the 'date of gift' using transfer-date or receive-date?
I appreciate again for your great help.
Thanks millions again!