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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12675
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Up to what amount can you receive as inheritance in dollars

Customer Question

Up to what amount can you receive as inheritance in dollars from a relative that is still living that lives in another country? For example the father lives in france they want to give their son in the US 100,000 as ininheritence but while they are still living. Up to what amount can they receive without paying tax--if they pay tax what is the percentage they would have to pay
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Hi,.This is not considered an inheritance... this is, under US tax law, a gift (transfers while living = gifts, transfers after death = inheritance).. Now there IS a Gift & Inheritance tax (a transfer tax) .. but that is paid only by a US GIVER- if alive (or the ESTATE of the person who has passed - the FINAL gift, if you will), if the giver has died..But in YOUR situation, the persons giving the gift are not US Persons (tax residents or citizens) so there is no tax at all..No income tax, becase gifts and inheritances are excluded from INCOME tax (Under section 102 of the Internal Revenue Code).. and no gift or estate tax because the receiver of the gift does not PAY the tax, and the givers, here, are not US persons..Let me know if you have questions ....Lane
Customer: replied 2 years ago.
Just to confirm no income tax for gift--and in this case because the giver is not a us person they do not pay a tax---also how do you claim it on your taxes correctly--can you define that the giver is not a us citizen
Customer: replied 2 years ago.
My understanding is you could receive up to 10000 without paying tax
Expert:  Lane replied 2 years ago.
That is incorrect ... a person can GIVE up to 14,000 without filing a gift tax form ( if that peron is a US person)... (started at 10,000 .. has now been indexed for inflation to 14,000) ... but again, this is a transfer tax that the GIVER pays ,,, IF they are subject to US jurisdiction .... but there is NO reporting here for tax purpopses..IF the gift is more than $100,000 there is a declaration form that needs to be filed (NOt a tax form but rather a form that is sent by IRS to treasury for tracking of money flows -(money laudering , gun running, etc) ... frm 3520... but again this is just to declared te moneyncoming into the US .... NOT a gift tax form).Here's the form, ... but again, only a declaration form ... NOT a tax form .... AND only necessary for gifts of over $100,000 in a tax yearhttp://www.irs.gov/pub/irs-pdf/f3520.pdf
Expert:  Lane replied 2 years ago.
Hi,
I’m just checking back in to see how things are going.
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Let me know…
Thanks,
Lane