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My parents who leave overseas and are not US residents want…

My parents who leave overseas...
My parents who leave overseas and are not US residents want to transfer around 30,000 dollars to my US back account as gift. My wife and I are planning to use this money as downpayment towards buying a house here in US. Do I have to pay tax on this money or report it to IRS or any other organization? Is there a limit of how much money they can send to me? If instead of wire transfer, I receive the money as cash and then deposit it to my bank account would that raise any issue? Thank you very much in advance.
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6/22/2018
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,777
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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My name is***** will assist you today.

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You do not have to pay taxes or report a gift of $30,000 from a non US Resident. --You would have to report, but not pay taxes, if the gift was for $100,000 or more from a Non US Resident.

There is not a specific limit for wire transfers.--If you deposited the money in cash into your bank, the bank should ask you the source of your funds. The bank has an obligation to know their client and to know their banking activity. In my opinion, depositing $30,000 in cash would be suspicious activity, but as long as you are able to show the source of funds are from your parents, there would be no issue.

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Customer reply replied 1 month ago
how to show the source of funds are from my parents? Does a signed letter from them suffice?

A letter would work and so would the incoming wire transfer receipt

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Generally, an explanation would be enough to satisfy the bank.

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For example: If you say you say the source of funds are for a down payment on a house and gift for your parents, that is understandable. If you start making $30,000 deposits every month, then a lot more questions would need to be answered

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Customer reply replied 1 month ago
these issues raise when I deposit cash into the account, is that right? in the case of wire transfer I suppose the sources are clear.

Yes, this could be an issue when you make a cash deposit.

Generally the source of a wire transfer is clear but not always. Especially with an international wire transfer. Although, along with a wire transfer you can generally include notes when you initiate the wire transfer.

Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,777
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified
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Customer reply replied 1 month ago
Thank you

Thank you for the rating.

Please do let me know if you have any additional questions.

Have a great day

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Customer reply replied 27 days ago
Hello,
So the transaction happened yesterday for 50,000 as a wire transfer to my bank account. The bank has not contacted me or asked me anything, but my parents have sent me an unofficial signed letter saying that we are sending you a gift for buying a house. Do I need to give the letter to anywhere as a proof for source of money?
PS: The transfer was done indirectly from a company in UAE, so It is not directly under my parents name.
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