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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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hello, My name isXXXXX have a question on gifting tax.

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   My name isXXXXX have a question on gifting tax. I have a relative, who is non-US resident, transferring 100k to me. I read lots of information on line saying that since the transfer happens from a foreign country, the relative doesn't have to pay gifting tax to the US goverment. Is this correct?
   I am a perminent resident of the US. Do I get taxed for the money I receive? Such as income tax? or Gifting tax?

Hello stay,

When you receive money from a foreign source, the money is not subject to gift tax by the donor nor by the recipient.

However, anytime that you receive more than $100,000 in any one year from a foreign source, you must report receipt of that money by filing Form 3520 with the IRS. There is no tax due with the form, but it is a reporting requirement.

Filing this form is really for your own protection, as if you were ever selected for a random audit at some point, you would have a clear record of reporting where this money came from.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you stay.

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