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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2832
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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If an alien husband wires a certain amount of money (ex. USD

Customer Question

Hi. If an alien husband wires a certain amount of money (ex. USD 500,000) to a permanent resident wife, will any gift taxes be imposed? thank you
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

If your spouse is not a US citizen, the spousal gift exclusion us NOT unlimited.

The special tax-free threshold is $147,000 a year (in 2015) - and that amount is indexed for inflation every year.
The gift above that amount is considered taxable gift - and the donor would be required to file the gift tax return n- form 709.
There will NOT be any gift tax as long as the lifetime limit is not reached. That limit is $5,430,000 for 2015 and also is adjusted very year.
So far - the gift of $500,000 to a non US citizen spouse made by the resident alien would trigger filing requirements for the gift tax return - but there most likely - would not be any gift tax liability.

Expert:  Barbara replied 1 year ago.

Different expert here - my name is ***** ***** I disagree with the first answer.

If a nonresident husband wires $500,000 to a permanent resident wife, the wife has the reporting requirement. The permanent resident wife receiving a gift of more than $100,000 from a non-resident (even her spouse) must file Form 3520. There is absolutely no tax liability. The gift is tax free.

The following link 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