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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2995
Experience:  IRS licensed Enrolled Agent and tax instructor
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I'm a U.S. Citizen with a 90k USD bank account in the Philippines

Customer Question

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
Expert:  emc011075 replied 2 years ago.
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.
Let me know if you have any questions.
Expert:  emc011075 replied 2 years ago.
I see you read my respond. Any question? Is there anything else I can help you with today?
And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.