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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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Im a CanadXXXXX XXXXXving in New Hampshire. My mother, still in

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I'm a CanadXXXXX XXXXXving in New Hampshire. My mother, still in Canada, wants to send me money, maybe as much as $100,000. Most of the money would be put away for retirement but I would like to spend a part of it. What is the tax impact on me?



If you are living in the U.S. , this is considered a gift from a relative or friend from overseas. (foreign gifts) and there are no tax implications on the gift. If you invest the money, you will incur tax exposure to interest, dividends, or capital gains on the investments.


However, for security related issues, gifts in excess of 100,000 must be reported to the IRS on form number 3520. (no tax is assessed).


Also note that for those same security reasons, banks are required to report transactions of 10,000 K or more.

Customer: replied 8 years ago.
Since I don't work, my husband and I make only one tax report. He earns over $200,000 a year. Will filing form 3520 under my name on his tax report impact him?



No it will not. I say again:


1. foreign gifts are not taxable income in the united states or any of the 50 u.s. states.


2. Filing of form 3520 is only for gifts that exceed 100,000, for example 100,001 dollars or more. AND, Most importantly, the filing of the form 3520 IS NOT for income tax purposes. It is for security issues.


The security issues have to do with anti money laundering and anti-terrorism. The form works its way through the IRS system to the U.S. Treasury security offices.


(the U.S. Treasury is the parent organization for the IRS)


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