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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55285
Experience:  29 years of experience as a tax, real estate, and business attorney.
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Are gifts over $100,000 transferred from family members overseas

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Are gifts over $100,000 transferred from family members overseas subject to any US taxation?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. They are not subject to tax, but you do have to report them to the IRS. You must file Form 3520 with the IRS to report any gifts from out of the U.S. This is only a reporting requirement; there will be no tax.

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Customer: replied 4 years ago.

I am an H1-B visa holder and the gift is from my father. He is a US citizen but lives abroad and has not lived in the US since childhood, nor does he intend to move here. Do these facts alter any part of your first answer or have any tax implications for my father?

Thanks for your clarification. It changes nothing relating to you. With respect to your father, pursuant to the IRS requirements, if you are a U.S. citizen or resident alien living or traveling outside the United States, you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States. He will likely owe no gift taxes, but will need to file a gift tax return. Each donor can give $14,000 per year per person under the annual gift exclusion. In addition to that, each person has a $5,120,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,120,000 in gifts without incurring gift tax....the donor must file a gift tax return to let the IRS know how much of the lifetime exemption is being used, but there will be no gift tax until cumulative gifts have exceeded the $5,120,000.
Customer: replied 4 years ago.

Thank you for the detailed reply. He has never filed any US tax returns since he has not lived here since childhood and has never had any US income, and does not know that filing is required. Are there any repurcussions for him if he does not file in the future?

You're welcome. In reality, there are not going to be repercussions. Just wanted to give you the technical requirements.
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