Discussion:Gifts TO non-US residents/citizens
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Discussion Forum Index --> Basic Tax Questions --> Gifts TO non-US residents/citizens
Discussion Forum Index --> Tax Questions --> Gifts TO non-US residents/citizens
| 12 May 2008 | |
| Can a US citizen make gifts to non US residents/citizens without incurring in any taxes (ie: can the US citizen make a $12,000 annual gift to each of his three non-US residents/citizens friends?) | |
| 12 May 2008 | |
| As long as 1) the transfers are legitimately gifts, 2) all of the transfers are directly to individuals (and not to trusts or other entities), and 3) each of the gifts is $12,000 or less, then there should be no U.S. tax. | |
| 12 May 2008 | |
| Thank you for your answer. What about gifts made BY non-US citizens/residents to a USA resident. Will either one have to pay gift taxes or report the gift if it is more than $12,000 but less than $100,000? | |
| 13 May 2008 | |
| If the property being gifted by the NRA is situated in the U.S., then any amount in excess of $12,000 is subject to U.S. gift tax. | |
| 13 May 2008 | |
| The NRA would gift the US resident cash deposited in a US bank (not tangible property). Also the NRA doesn' live in the US. Would an $80,000 cash gift by the NRA to a US resident have to be reported and/or subject to gift tax? | |
| 13 May 2008 | |
| The IRS may not agree that cash deposited in a US bank is not tangible property. | |
| 22 May 2008 | |
| If the money is in the US already, then it could be a taxable gift to the extent it exceeds $12,000. I certainly would want to make the argument that it was taxable if I were the IRS agent auditing the case.
To make it a 100% tax-free gift with no question as to whether or not it is tangible property, NRA takes money out of US, puts into bank in any other country in the world, and then writes cheque to US person for $80,000. No tax to recipient. This works for any sum of money in excess of $12,000. If it is in excess of $100,000, a Form 3520 is required to report receipt of the gift. NRA may be subject to gift tax in his or her own country. | |
Singer1040 (talk|edits) said: | 22 May 2008 |
| What about gifts in excesss of $12,000 but less than $1 million from a resident alient to a nonresident alien. Brother, a resident alien (green card holder in the U.S.) makes a gift of property FMV $300,000 to his brother who is a resident/citizen of Italy? | |
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