cash gift from non resident non us citizens

Antony wrote in news:h8fi03$64q$ snipped-for-privacy@aioe.org:

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?

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.

US citizens have to file US tax returns no matter where they live. This is the law of the land of the free.

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.

If they were US citizens, I would advise them to do two payments of

In addition to what has also been said, you will also have to report that you control a foreign bank account (assuming that the account is not within the US.) You will also have to watch out for money laundrying laws and proceeds of crime laws which control large sums of money moving between countries.

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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.

Yes. We do file returns and pay our taxes.

Thanks for clarifying.

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

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?

The last time I checked (and I may have this wrong but I believe it's at least close), if the IRS determines that you gave up your citizenship or green card for the purpose of avoiding taxes, they will keep going after you for ten more years.

That changed with the Heroes Act. See

If you renounce your citizenship or green card, you will have a tax bill as if you sold all of your stock, with an exemption of 600k indexed for inflation each year.

If you give a give in excess of 12k (or I guess now 13k), the receiver has to pay gift tax at the maximum rate!

And I found a cross reference. Seems section 121 (exclusion of 250k/

The law is at

Still have to read up more on this thing.

In article , snipped-for-privacy@yahoo.com ( snipped-for-privacy@yahoo.com) writes: | On Sep 26, 2:44 pm, "Stuart A. Bronstein" | wrote: | | > The last time I checked (and I may have this wrong but I believe it's | > at least close), if the IRS determines that you gave up your | > citizenship or green card for the purpose of avoiding taxes, they | > will keep going after you for ten more years. | | That changed with the Heroes Act. See | |

Fascinating. This sounds too good to be true. Most of my investments are bonds which hover around par. I have a few stocks, but if you net all the unrealized losses and gains from stocks, bonds, etc. the result is probably negative. Even if you do not include the losses the total (taking into account some real estate) is still less than $600k. If I were leaving I would probably liquidate the bonds anyway. Am I missing something? Even the IRA provisions don't sound too bad.

Dan Lanciani ddl@danlan.*com

In article , ddl@danlan.*com (Dan Lanciani) writes: | | In article , snipped-for-privacy@yahoo.com ( snipped-for-privacy@yahoo.com) writes: | | On Sep 26, 2:44 pm, "Stuart A. Bronstein" | | wrote: | | | | > The last time I checked (and I may have this wrong but I believe it's | | > at least close), if the IRS determines that you gave up your | | > citizenship or green card for the purpose of avoiding taxes, they | | > will keep going after you for ten more years. | | | | That changed with the Heroes Act. See | | | |

Hmm. Maybe I read too much into the comparison to the "former" regime. Are these new rules instead of or in addition to the old ones? (Last time I checked the old rules were ten years for high-income and high-net-worth individuals regardless of motive.)

Dan Lanciani ddl@danlan.*com

Not if you have $5 million in unrealized capital gains :).

Good questi(a) Treatment of expatriates (1) In general Every nonresident alien individual to whom this section applies and who, within the 10-year period immediately preceding the close of the taxable year, lost United States citizenship shall be taxable for such taxable year in the manner provided in subsection (b) if the tax imposed pursuant to such subsection (after any reduction in such tax under the last sentence of such subsection) exceeds the tax which, without regard to this section, is imposed pursuant to section 871.

I think the above means that they have to file a 1040-NR for 10 years, in addition to the expatriation tax on unrealized capital gains.

(A) the average annual net income tax (as defined in section 38(c)(1)) of such individual for the period of 5 taxable years ending before the date of the loss of United States citizenship is greater than $124,000,

What if each spouse had an income of say 90k? Does the expatriation tax to apply to them?

Which if one spouse had income of 180k and the other 0k, and they lived in a community property state? Does the expatriation tax to apply to them?

Which if one spouse had income of 180k and the other 0k, and they did not live in a community property state? Does the expatriation tax to apply to them, or one of them?

And is income gross income, AGI, or taxable income?

The law you quoted talks about average annual net income *tax* of $124,000.

The best I can find is

It would seem to me that she can give any amount now that 10 years have passed.

You mention that she worked here about 10 years. Better clarify that. If she worked 10 or more years she can qualify for social security benefits.

Yes, I'm sure she qualifies for social security. But you don't need a green card for that.