Hello JA Customer,
No tax will be due but there will be some reporting requirements.
Can you please confirm if your father is a US citizen or if he resides outside of the US so I can give you the proper reporting information.
Hello again tim,
Since your father is not a citizen of the US, he is not the one who is subject to reporting requirements, so if any reports needed to be filed, you would be the one responsible for filing that report.
However, under current law, if the only amount he is gifting to you is $40,000, then no report is required. When a US person receives a gift or inheritance from a foreign source, he or she is required to report receipt of that foreign money by filing Form 3520 with the IRS. But that form is only required if the foreign gift or inheritance exceeds the amount of $100,000 in any one tax year. As long as your father does not send you more than $100,000 in any one year, you are not required to file any forms.
In the event he ever does plan to send you more than the $100,000, just keep in mind you are required to file form 3520 to report the gift, but this form is strictly for informational purposes only, and still no taxes would be due.
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Thank you tim