How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barbara Your Own Question
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2827
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
71603090
Type Your Tax Question Here...
Barbara is online now
A new question is answered every 9 seconds

Hi, I am resident of the US and want to buy an apartment here.

This answer was rated:

Hi, I am resident of the US and want to buy an apartment here. My father wants to transfer $200k from his russian account in a russian bank to my american account in the US. My father is living, working, resident etc in Russia. Is there any tax on that transaction? In what form should it be registered so that I do not to have pay tax (a gift, loan, etc) and what documents should be prepared to prove it so that IRS do not withhold the tax?
Thanks!

Welcome. My name is XXXXX XXXXX it will be my pleasure to assist you with your tax question today.

 

You will need to file Form 3520 to report the gift. This form is for reporting purposes only, and should not be included with your tax return. The due date for Form 3520 is the same as your tax return, including extensions.

 

The following contains excellent information regarding Form 3520:

 

http://www.irs.gov/Businesses/Gifts-from-Foreign-Person

 

Please let me know if you require further information or clarification.

 

Thank you and best regards,

Barb

Barbara and other Tax Specialists are ready to help you

Hi, Irina.

 

Please let me know if I can assist you further.

 

Thanks.

 

Barb

Barbara and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Hi in the link you gave me it is said that the IRS may re-characterize purported gifts from foreign partnerships or foreign corporations as items of income that must be included in gross income. So what document should be provided to the IRS to prove that the gift is from an individual but not from a legal entity? Is there a form which should be provided by a notary and which will be accepted by the IRS as a prove of the origin of the income? What about Promisory Note saying that I am taking a loan from a foreign person?

Hi, Irina.

 

Thanks for your follow-up question. The following is the link to Form 3520:

 

http://www.irs.gov/pub/irs-pdf/f3520.pdf

 

The IRS will be relying on the information you provide on Form 3520. As I previously stated, it is for information purposes only. There will be no tax liability for you.

 

Thank you and best regards,

Barb