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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12679
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Is a non-resident alien who has paid capital gains on a

Customer Question

Is a non-resident alien who has paid capital gains on a property required to pay a gift tax if the money is given to a child. (grown) The donor has no income in 2016.
JA: The expert will know how to help. Please tell me more, so we can help you best.
Customer: The non-resident alien lives in Taiwan, and will not have to file a return in the U.S. in 2016 or 2017
JA: Is there anything else the expert should be aware of?
Customer: They filed a U.S. Non resident Alien Income Tax Return in 2015 to pay tax on the capital gain on the property.
Submitted: 2 months ago.
Category: Tax
Expert:  Lane replied 2 months ago.

Hi. - So sorry, yes, if the amount of the gift is more than 14,000.

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Gifts from Non-Resident Alien (of U.S. situs property) to a NRA spouse has an annual exclusion of 145,000

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Gifts from Non-Resident Alien (of U.S. situs property) to NRA non-spouse has an annual exclusion of 14,000 per person gifted.

Expert:  Lane replied 2 months ago.

Did you see my answer?

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Again, yes, although an INCOME tax may not be owed ... if this is US property, and the gift is more than the annual gift tax exclusion of 14,000 over year per recipient, a gift tax will be owed.

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Non Resident aliens giving US property to non-resident aliens have no lifetime gift exemption. Therefore, a gift tax (a transfer tax, not an income tax) is owed.

Expert:  Lane replied 2 months ago.

Please let me know if you have ANY questions at all, before rating me.

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Thanks,

Lane

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice on three continents since 1986.