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I'm a U.S. Citizen with a 90k USD bank account in the Philippines

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It was from my mom...
I'm a U.S. Citizen with a 90k USD bank account in the Philippines It was from my mom given to me as a gift when they sold a family property. Do I have to file a FBAR this year and pay tax in the Philippines and pay taxes here in the states for additional tax income? Thanks
Submitted: 2 years ago.Category: Tax
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5/13/2015
Tax Professional: emc011075, Tax adviser replied 2 years ago
emc011075
emc011075, Tax adviser
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Satisfied Customers: 3,235
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Hi. My name is ***** ***** I will be happy to help you.
Gifts are not taxable to receiver. You don't have to claim it as income and you don't have to pay US tax on it. Unfortunately, because your are not including it in your taxable income, you will not be able to deduct taxes your paid to Philippines tax authorities.
FBAR has nothing to do with the origin or taxability of the money. It is strictly reporting of an existence of a foreign bank account. If you transferred the proceeds from your mother's account into your US account, no FBAR is required. If you opened an bank account if Philippines and deposited the money there, you will have to file FBAR.
If the total gift you received in 2014 was less than $100,000 no other reporting it required. If it was more than $100,000 you will have to file form 3520 to report the gift. You will only report that your received a gift from a foreign person. You will NOT include the amount in your taxable income and it will NOT be taxed. http://www.irs.gov/Businesses/Gifts-from-Foreign-Person
Let me know if you have any questions.
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Tax Professional: emc011075, Tax adviser replied 2 years ago
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