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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14478
Experience:  15years with H & R Block. Divisional leader, Instructor
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Hi I have two questions about receiving gift money through

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Hi I have two questions about receiving gift money through international wire transfer.
I am looking to buy a property and seek gift money, around 120 k from my international relatives. I learnt some basics fro IRS about reporting above 100 k.
My questions are:
1. Do I need to prove the gift money is from blood-related kin? My brother said he knows an intermediate who can take local currency and send US in a good rate.

2. Do I need to report to IRS if I receive 50 k from my brother and 70 k from my sister-in- law? Would the total of 120 k make me have to report, or can I choose not to report because they are not related source. Or would my sister-in-law sending 70 k to my husband would avoid any need for reporting?

Thanks!

M.

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.

Robin D. :

1. Only if the IRS asks for the proof. The gifts do not have to be from blood relatives. They can be from anyone that you are not providing services to or work for.

Robin D. :

2. YOu have to report on 3550 if all your gifts in the tax year (together) are more than $100,000. You do not get to choose if you will report.

Robin D. :

If your husband receives gifts then his are different form yours.

Robin D. :

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Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.

Customer:

Robin. I am certainly satisfied with your fast response and clear answers. I would like to further confirm. If my brother sends gift to me (50 k) and my husband gets gift from his sister (70 k). then we don't need to report to IRS, correct? even though we share one single bank account and report joint tax turn? Thanks. M

Robin D. :

The 3550 is for individuals so if you each receive gifts they are not added together for reporting requirements.

Customer:

Ok that sounds clear to me, Robin. Thank you so much.

Robin D. :

You are most welcome.
Your positive rating is always thanks enough.


 

Customer:

Robin

Robin D. :

Yes

Customer:

could you hang on? if his sister can contribute 50 k to me and 70 to him, would it not meet reporting requirement then?

Customer:

sorry for asking further

Customer:

I am just not quite clear about this reporting condition.

Robin D. :

No because the rule is on the gifts you individually receive not on the same nonresident alien giving the gifts .

Customer:

OK, Robin. Now it is really clear. Thank you so much.

Customer:

I will give my full satisfaction in my review. Thank you.

Robin D. and 3 other Tax Specialists are ready to help you