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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15610
Experience:  15years with H & R Block. Divisional leader, Instructor
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Im receiving $150000 from my mother (foreign citizen) 1. do

Customer Question

Im receiving $150000 from my mother (foreign citizen)
1. do I need to declare it to the IRS?
2. Do I pay taxes on this amount?
3. If I do, how much can I get each year so I do not have to pay taxes
4. My mother is a citizen of and lives in Mexico. Do you know if she has to pay taxes in Mexico to send me the gift?
thank you in advance
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

If the gift is $100,000 or more you are required to file form 3520 to report it. You are not taxed but you must report. You can receive as much in gifts as someone will provide to you and not be taxed on the gift but the reporting is required if the gift(s) are $100,000 or more in the year.

Mexico does not levy a gift tax on the giver or receiver.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Expert:  Robin D. replied 1 year ago.

Please advise if you need more information or rating in a positive way is acceptable.

Rating lets Just Answer know you were assisted and credits me for my time.

Expert:  Robin D. replied 1 year ago.

Did you need a link to the form 3520?

Please let me know.

Customer: replied 1 year ago.
Is it correct that there is no need to fill out form 3520 if I get $100 000 on 2015 and the rest on 2016?
Expert:  Robin D. replied 1 year ago.

You must file Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, if, during the current tax year, you recive Gifts or bequests valued at more than $100,000 from a nonresident alien individual or foreign estate.

So if you receive $100,000 (in total gifts from all foreign individuals) in 2015 you would not have to file the 3520.

Expert:  Robin D. replied 1 year ago.

Eacj year stands independently so receiving additional gifts in 2016 would not effect 2015 reporting.