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Recipient of gift from a non-US citizen living abroad

Customer Question
If a family member who...
If a family member who lives abroad and is not a US citizen wants to give me a gift of approx $50,000, do I owe taxes on this gift? And how would I report this money on my tax return? If I do not owe taxes, do I still report it? (my husband and I are both US citizens residing in the US)
Submitted: 9 years ago.Category: Tax
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2/3/2008
Tax Professional: MequonCPA, Certified Public Accountant (CPA) replied 9 years ago
MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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DearCustomer-

There is no limit on the amounts that can be received by US residents from foreign individuals.

There is no tax on an gift received from a non-resident individual. If the gift is in excess of $100,000, the recipient is required to file an informational form to show where the funds came from. I have included a link to Form 3520 and instructions below.

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

http://www.irs.gov/pub/irs-pdf/i3520.pdf

MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
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Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.

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