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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
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Experience:  Over 20 Years experience
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My father gave me a property thats worth $300,000, which is

Customer Question

My father gave me a property that's worth $300,000, which is outside of the United States, I’m planning to sell it and transfer the money to the U.S. how much percent is subject to gift tax?
Submitted: 5 years ago.
Category: Tax
Expert:  R. Klein, EA replied 5 years ago.

Randalltax :

In the US, recipients of gifts are not taxed.

Randalltax :

Gift tax is assessed on the giver. Therefore your father, if a US citizen or resident, would be taxed and not you.

Randalltax :

If your father is neither a citizen or resident, there is no gift tax due to the United States.

Randalltax :

If your father is a citizen or resident, he can also use part of his lifetiime gift tax exemption and file a return and pay no tax.

JACUSTOMER-34dt63x1- :

so I can transfer the money and put in U.S. bank? he didn't gift me the money he gifted me the land and now i want to sell it that tax law still applies?

Randalltax :

The value of the gift is the value of the land as HE PAID FOR IT. You likely have a CAPITAL GAIN if you sold it. The capital gain is taxable income to you as a long term capital gain (15% max tax rate for US tax. So if the property was worth $100K when he bought it, the gift was worth only $100K to you.

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