As I understand it, a gift from a foreign person to a U.S. person is not taxable to the receiver. If however the gift exceeds $100K, then a form
3520 must be filed to declare the gift. My question is what happens in a case where a U.S. person receives two or more gifts from different people over the course of one tax year, the sum of which exceeds $100K?
Is the $100K actually a threshold that applies to all gifts received, and once that threshold is crossed, then you are obligated to itemize each and every gift received during that year?
See the instructions to form 3520. The 100k limit applies to a single gift. If you receive two gifts of 99k, there may be no reporting requirement. If the gifts are from related people, then they are considered one, and form 3520 is required.
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Who Must File
You are a U.S. person who, during the current tax year, received either: 1. More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or
Related Person
A related person generally includes any person who is related to you for purposes of section 267 and 707(b). This includes, but is not limited to:
*
A member of your family?your brothers and sisters, half-brothers and half-sisters, spouse, ancestors (parents, grandparents, etc.), lineal descendants (children, grandchildren, etc.), and the spouses of any of these persons. *
A corporation in which you, directly or indirectly, own more than 50% in value of the outstanding stock.
See section 643(i)(2)(B) and the regulations under sections 267 and 707 (b).
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