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My parents live in Egypt, while I live in northern California.

I've been thinking about buying...
My parents live in Egypt, while I live in northern California. I've been thinking about buying a house and they've offered to send me about $250,000. What are the steps that should be taken to be in compliance with US tax code and law.
Thanks
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Answered in 16 minutes by:
9/19/2013
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,592
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Verified

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today

Megan C :

I'm sorry but your requested professional is not online.

Megan C :

Because this gift is over $100,000 you will need to file form 3520 with the IRS

Megan C :

This simply declares your gift, but no tax will be due on it

Megan C :

You will not put any information about the gift down with your tax return, you will just file form 3520

Customer:

Hi Megan,

Megan C :

http://www.irs.gov/Businesses/Gifts-from-Foreign-Person

Customer:

So what you're saying is that they just can transfer the money to my bank account and this money is not taxable? Should I file that form with the IRS during my annual tax return, or should I do it as soon as the money is transferred? Also, are there any special steps to be taken if I'm using this money for a house down payment?

Megan C :

Yes, you can transfer the money directly to your bank account, and it's not taxable at all.

Megan C :

No, you will not do anything on your annual tax return

Megan C :

File form 3520 at the same time as your tax return, but file with the address listed on the instructions

Megan C :

There's nothing special to do if the money is a down payment on a house

Customer:

Ok, got it Megan. Thanks a lot

Megan C :

You're welcome

Megan C :

If you would, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

No problem.

Megan C :

Thanks so much!

Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,592
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Verified
Megan C and 87 other Tax Specialists are ready to help you
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Customer reply replied 4 years ago
I promise to do that, you were great help. Thanks.
Thank you Mohamed,

It was a pleasure working with you and I hope you enjoy the rest of your night.

Thanks again...

Megan
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Megan C
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,592
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Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

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