Discussion:Non resident gift tax question

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Discussion Forum Index --> General Chat --> Non resident gift tax question

Hombredeass1 (talk|edits) said:

14 January 2008
Please please help anyone. If a non resident gives another non resident > 100,000 in U.S. Treasury notes, is this exempt from the gift tax?

LKfromCANADA (talk|edits) said:

14 January 2008
I think this might answer your question


§ 2511. Transfers in general a) Scope Subject to the limitations contained in this chapter, the tax imposed by section 2501 shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible; but in the case of a nonresident not a citizen of the United States, shall apply to a transfer only if the property is situated within the United States. (b) Intangible property For purposes of this chapter, in the case of a nonresident not a citizen of the United States who is excepted from the application of section 2501 (a)(2)— (1) shares of stock issued by a domestic corporation, and (2) debt obligations of— (A) a United States person, or (B) the United States, a State or any political subdivision thereof, or the District of Columbia, which are owned and held by such nonresident shall be deemed to be property situated within the United States.

Hombredeass1 (talk|edits) said:

15 January 2008
I'm sorry, that reads very very confusing. Does that mean they are taxed?

LKfromCANADA (talk|edits) said:

16 January 2008
The first part states that gift tax applies if property is located in the United States. The second part (2) states debt obligations (bonds) of the United States are deemed to be located in the United States, therefore, they are taxable.

Hombredeass1 (talk|edits) said:

23 January 2008
is there any chance of you emailing me at hombredeass@hotmail.com so I can ask just a couple more questions on this topic?

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