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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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Iam an Us Citzen, my dad lives in brazil and wants to give

Customer Question

Iam an Us Citzen, my dad lives in brazil and wants to give me a house there, do i have to report it to the Irs, and if i sell the house do I have to pay taxes here Also if my dad wants to give me $500,000.00 can he just wire to me. do I pay taxes
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.

LEV :

Hi and welcome to Just Answer!

LEV :

Gift is not a taxable income for the recipient. Thus - if you receive a gift - you do not need to report it on your tax return and do not need to include it into your taxable income.

LEV :

See for reference page 34 in IRS publication 525 - http://www.irs.gov/pub/irs-pdf/p525.pdf

Gifts and inheritances. Generally, 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. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you.
LEV :

Gifts from non-resident aliens above $100,000 are also reported on the form 3520 - http://www.irs.gov/pub/irs-pdf/f3520.pdf see part IV. There is no tax associated with this reporting.

LEV :

If you sell the property which you receive as a gift - you will recognize the capital gain = (sale price) - (basis) and it will be your taxable income.

LEV :

Let me know if you need any help or clarification.