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I want to borrow $700,000 cash from my parents who is not a

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Hi..I want to borrow $700,000...
Hi..I want to borrow $700,000 cash from my parents who is not a green card holder or U.S. citizen, I will be using this money to pay for my house that I am building, will this trigger an Audit from IRS
Submitted: 2 years ago.Category: Tax
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Answered in 23 minutes by:
8/15/2015
Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago
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
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Thanks for your question --- this will not trigger an audit at all, and there is not any reporting requirement provided you are going to pay the money back. If the loan is ever forgiven then you have a gift from them and you must fill out form 3520 -- nothing to worry about though because no tax is due as it is a gift. You just have to declare gifts from foreign persons over $100,000. If this is a loan, have a written loan agreement on file that way you can prove it's not a gift (if you don't file form 3520)

Please let me know if you need anything additional - if not please rate positive .

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Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago
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Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago

Please rate so that I may be paid, thanks --- even though the site has been paid, I am not credited until you rate.

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Megan C
Megan C
Megan C, Certified Public Accountant (CPA)
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