Thousands of verified Experts are ready to answer your specific questions 24/7.
Satisfaction is guaranteed and you pay your Expert only if you are satisfied.
Just type your detailed question and click "Get an Answer."
In minutes you'll get a response from an Expert. You can always ask follow-up questions.
Happy with your answer? Just click "Accept" to pay your Expert.
My father, who lives in the UK, wired me money from his savings. Will I owe any taxes on this money, which is now in the US? The amount totaled $88,500.
Country/State/Province of question: money was sent from UK Already Tried: I asked a local tax person. He told me I would owe no tax.
Your tax person is absolutely correct.
Gift is an income, but not taxable income. Please see IRS publication 525 page 33 for reference - http://www.irs.gov/pub/irs-pdf/p525.pdf
So - the recipient does not need to claim it on his/her tax return and does not owe any taxes. There is no limit on the gift value.
The donor - may need to file a gift tax return if the gift amount is above $13,000 per person per year (for 2009) , but there would not be any gift tax unless the lifetime limit of $1,000,000 is reached.
However - in your situation - if your father is not an US person - not US citizen and not US resident - he is not under the US jurisdiction and do not need to file a gift tax return.
Let me know if you need any help.
Tax Advisor
Taxes, Immigration, Labor Relations