Gift from parents who are not US citizens

Oct 04, 2016 1 Replies

Hi,



My parents are non-US citizens. I am a US citizen now. They would like to give me some money. I was browsing through the US tax laws regarding receiving gifts from foreign people. This is the link:

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Question:



  1. It seems like there is no limit to the amount that can be received. Is this correct?


  1. Gifts from foreign person are not subject to income tax. Is this correct?

  2. If the gift exceeds 100K, Form 3520 must be filed.

Is there anything else that I should be aware of or do in addition to what is specified in the link? Thanks.


snipped-for-privacy@gmail.com wrote

Do you mean limit without income tax? Assuming it's actually a gift, that's correct. There is also no US gift tax on someone who is neither a US citizen or resident, and the gift is made from assets not based in the US.

In general, yes. But if a payment for services is characterized as a gift, the IRS can recharacterize it as taxable income depending on the facts.

Right.

Not that I can think of. But others will be along in a few minutes who may have other thoughts.

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