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Several issues...If we are discussing a gift - that should be a true gift - not a purchase transaction and not a loan which is paid back or any other types of transactions.What is considered a gift? Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return.If the transaction is NOT classified as gift - it would be evaluated differently.Based on your information - both transfer to the mother and her transfer back to the son are classified as gifts.2.
In the US - gift - is not taxable income for the recipient and you do not need to be reported to the IRS.
There is no any amount limit. Please see for reference IRS publication 525 page 31 left column - - http://www.irs.gov/pub/irs-pdf/p525.pdf
Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you.
3.That would be the donor who files form 709 - gift tax return - not recipients of the gift. The gift tax return is required when the total value of the gift is above $14,000 (for 2013) per person per year.There will not be any gift taxes unless the lifetime limit of $5,250,000 (adjusted every year for inflation) is reached.So - it is likely that the gift tax return will be required to be filed by the donor, but there will not be any gift tax due.The US citizen is required to file the gift tax return if the gift he made per person per year is above the filing threshold. Nonresident aliens are not filing US gift tax return unless the gifted assets are suited in the US. 4.If you are US person and will receive a gift from nonresident alien - there is additional reporting requirements. The fact of receiving the gift from a nonresident alien is separately reported on form 3520. -http://www.irs.gov/pub/irs-pdf/f3520.pdf. In general, Form 3520 is due on the date that your income tax return is due, including extensions. There is no tax associated with that form. Only gifts above $100,000 are reported.The gift of $85,000 is below reportable threshold and form 3520 is not required.Let me know if you need any clarification this matter.
Is there a limit on the number of annual gifts from a nonresident alien? Example $85,000 in 2013 and $85,000 in 2014.
There is NO limits on the number of gifts. The filing threshold only applies to the total amount of gifts the US person receives during that tax year.