Are the tax consequences of gifting to a permanent resident the same as gifting to a US citizen? Can I gift $13,000 to a permanent resident during 2011 without triggering any gift tax or filing requirements?..TIA, Ron
Gift to Permanent Resident
Jan 19, 2011
5 Replies
It's the citizenship of the donor that matters. If the donor is a non- citizen they can gift a unlimited amount to a US citizen or resident. The US citizen or resident receiver will have to file a form, I think
3520, if the gift is in excess of around 100k; no tax is due but the penalty for failing to file is steep. If the donor is a US citizen or resident, then they can give 13k to any one person without gift tax considerations, and the citizenship of the person does not matter. If the donor is a US citizen or resident and the receiver is their spouse and is not a citizen then the gift amount is around 125k, and if the receiving spouse is a citizen then gift amount is unlimited.
Thanks for the help...Ron
Just to make sure that I am not misunderstanding the statement above, in each calendar year (or tax year?), a US citizen or resident can give $13k to each of several different persons (not just to one person) without any gift tax considerations and without reducing the $1M lifetime exclusion, right? Or does a gift tax return need to be filed to reduce the lifetime exemption if more than one such gift is given in an year?
--Dilip Sarwate
Right.
No, a gift tax return normally only needs to be filed when a gift to any individual exceeds the exemption amount, which is $13,000 for this year.
The exclusion is also $5,000,000, not $1,000,000 for 2011.
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