cash gift from non resident non us citizens

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Subject Author Date cash gift from non resident non us citizens Antony 09-12-2009  Re: cash gift from non resident non us citizens Han 09-12-2009  Re: cash gift from non resident non us citizens removeps-groups@yahoo.com 09-12-2009  Re: cash gift from non resident non us citizens Antony 09-20-2009  Re: cash gift from non resident non us citizens W 09-26-2009  Re: cash gift from non resident non us citizens Stuart A. Bronstein 09-26-2009  Re: cash gift from non resident non us citizens removeps-groups@yahoo.com 09-27-2009  Re: cash gift from non resident non us citizens Dan Lanciani 09-27-2009  Re: cash gift from non resident non us citizens Dan Lanciani 09-28-2009  Re: cash gift from non resident non us citizens removeps-groups@yahoo.com 10-02-2009  Re: cash gift from non resident non us citizens S 10-03-2009  Re: cash gift from non resident non us citizens W 10-03-2009  Re: cash gift from non resident non us citizens removeps-groups@yahoo.com 10-04-2009  Re: cash gift from non resident non us citizens W 10-04-2009  Re: cash gift from non resident non us citizens W 10-04-2009  Re: cash gift from non resident non us citizens parrisbraeside@yahoo.ca 09-13-2009  Re: cash gift from non resident non us citizens Antony 09-20-2009
Posted by Antony on September 12, 2009, 10:05 am Please log in for more thread options Hi My in-laws want to gift money to me and my wife. My in-laws are not US residents and are not US citizens. We are both US citizens. Incidentally we have just moved out of US recently and will likely be out of US for at least a few more years. But I think that has little effect on what I say below. From what I have looked up, following is possible without having to pay any tax. My in-laws can send at most 13*4 = 52,000USD to us this year. They can send another 52,000USD next year. My question is what is the best way to do this. We have a joint checking account with a US bank. Should they send one lump sum or do they need to be 4 transfers each of less than 13000USD. Does the mode of transfer matter? If it does what is best way to do this? Am I right in assuming that no one has to pay any US taxes on this? Am I right in assuming that nothing even needs to be mentioned in our tax returns regarding these? Is there anything the IRS expects me to do about this? Thanks, -Antony -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Han on September 12, 2009, 3:14 pm Please log in for more thread options > Hi > > My in-laws want to gift money to me and my wife. > My in-laws are not US residents and are not US citizens. > We are both US citizens. > Incidentally we have just moved out of US recently and will likely be > out of US for at least a few more years. But I think that has little > effect on what I say below. > > From what I have looked up, following is possible without having to > pay > any tax. > > My in-laws can send at most 13*4 = 52,000USD to us this year. > They can send another 52,000USD next year. > > My question is what is the best way to do this. > > We have a joint checking account with a US bank. > Should they send one lump sum or do they need to be 4 transfers each > of less than 13000USD. > Does the mode of transfer matter? If it does what is best way to do > this? > > Am I right in assuming that no one has to pay any US taxes on this? > Am I right in assuming that nothing even needs to be mentioned in our > tax returns regarding these? > Is there anything the IRS expects me to do about this? > > Thanks, > -Antony The recipient of a gift never has to pay (US) taxes on the gift. It is always a good idea to keep records, especially to indicate that you didn't have to do anything to get the gift. Since your in-laws are not US citizens or resident aliens, they don't have to pay taxes to US authorities, unles they have a US business (??). Is there a reason to use a US bank? -- Best regards Han email address is invalid Posted by removeps-groups@yahoo.com on September 12, 2009, 5:12 pm Please log in for more thread options > My in-laws want to gift money to me and my wife. > My in-laws are not US residents and are not US citizens. > We are both US citizens. They can gift you any amount they want. There is no tax due. If the amount they gift you is over 100k, you need to file form 3520 with your tax return to report the receipt of a foreign gift. I'm not sure if you have to also file form 3520 within 90 days of receipt of the gift (and it would be mailed to the place where you file your US tax returns). The above works because they are not US citizens. However, if they were US citizens or permanent residents before and gave up their citizenship, it may be more complicated, meaning that they may have to follow the rules of US citizens, but I'm not an expert on this. > Incidentally we have just moved out of US recently and will likely be > out of US for at least a few more years. But I think that has little > effect on what I say below. US citizens have to file US tax returns no matter where they live. This is the law of the land of the free. > From what I have looked up, following is possible without having to pay > any tax. > > My in-laws can send at most 13*4 = 52,000USD to us this year. > They can send another 52,000USD next year. In the US, the person who gives the gift pays the gift tax. So if they were US citizens, they would be limited to 52k a year as you state. If they want to give more, they can pay the gift tax or use up their lifetime exemption on form 709. But if they're not citizens, there is no limit. > My question is what is the best way to do this. > > We have a joint checking account with a US bank. > Should they send one lump sum or do they need to be 4 transfers each of > less than 13000USD. > Does the mode of transfer matter? If it does what is best way to do this? If they were US citizens, I would advise them to do two payments of 26k each deposited into a joint bank account owned by you and your spouse. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Antony on September 20, 2009, 1:56 pm Please log in for more thread options removeps-groups@yahoo.com wrote: > >> My in-laws want to gift money to me and my wife. >> My in-laws are not US residents and are not US citizens. >> We are both US citizens. > > They can gift you any amount they want. There is no tax due. If the > amount they gift you is over 100k, you need to file form 3520 with > your tax return to report the receipt of a foreign gift. > > I'm not sure if you have to also file form 3520 within 90 days of > receipt of the gift (and it would be mailed to the place where you > file your US tax returns). > > The above works because they are not US citizens. However, if they > were US citizens or permanent residents before and gave up their > citizenship, it may be more complicated, meaning that they may have to > follow the rules of US citizens, but I'm not an expert on this. > Excellent, I missed out on the fact that the 13000 limit (for 0 tax) does not apply since they have nothing to do with US. >> Incidentally we have just moved out of US recently and will likely be >> out of US for at least a few more years. But I think that has little >> effect on what I say below. > > US citizens have to file US tax returns no matter where they live. > This is the law of the land of the free. Yes. We do file returns and pay our taxes. > >> From what I have looked up, following is possible without having to pay >> any tax. >> >> My in-laws can send at most 13*4 = 52,000USD to us this year. >> They can send another 52,000USD next year. > > In the US, the person who gives the gift pays the gift tax. So if > they were US citizens, they would be limited to 52k a year as you > state. If they want to give more, they can pay the gift tax or use up > their lifetime exemption on form 709. But if they're not citizens, > there is no limit. Thanks for clarifying. > >> My question is what is the best way to do this. >> >> We have a joint checking account with a US bank. >> Should they send one lump sum or do they need to be 4 transfers each of >> less than 13000USD. >> Does the mode of transfer matter? If it does what is best way to do this? > > If they were US citizens, I would advise them to do two payments of > 26k each deposited into a joint bank account owned by you and your > spouse. > Since they are not US citizens I am assuming anything less than 100K would require no paperwork to be filed. Thanks for the help. -Antony -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by W on September 26, 2009, 4:16 pm Please log in for more thread options > > > My in-laws want to gift money to me and my wife. > > My in-laws are not US residents and are not US citizens. > > We are both US citizens. > > They can gift you any amount they want. There is no tax due. If the > amount they gift you is over 100k, you need to file form 3520 with > your tax return to report the receipt of a foreign gift. > > I'm not sure if you have to also file form 3520 within 90 days of > receipt of the gift (and it would be mailed to the place where you > file your US tax returns). > > The above works because they are not US citizens. However, if they > were US citizens or permanent residents before and gave up their > citizenship, it may be more complicated, meaning that they may have to > follow the rules of US citizens, but I'm not an expert on this. Does anyone here know the rule on a giver who was a permanent resident in the distant past, but gave up their green card and returned to their country of origin for retirement? When does such a giver owe US tax on the gift? -- W -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Rec'd non-cash gift, then sold it May 3, 2007, 2:23 pm Advice on reporting cash gift February 4, 2009, 5:23 pm Gift Tax From Foreign Resident November 17, 2008, 12:59 pm Advise citizens treasury May 29, 2007, 10:44 pm Inheriting non-US properties for a US citizens October 28, 2008, 10:28 pm CA resident with part year resident spouse March 15, 2009, 1:47 pm State tax filing for citizens working oversea. 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