dk@no.email.thankstospam.net (DK) wrote:
My mother, who is a non-US person living in Bulgaria, wants to
gift me, a US citizen, USD 60,000 via bank transfer.
I can't figure out the tax situation.
Based on this, I conclude that no one pays any taxes and I won't
even need to include this amount into my income taxes: https://www.bnymellonwealth.com/articles/strategy/how-the-us-gift-t ax-applies-to-foreign-nationals.jsp
However, based on this, I conclude that my mother will need to pay
gift tax: https://walk-law.com/us-gift-tax-rules/
(But I can't interpret the table to to figure out the rate).
Since your mother is not a US citizen, gift tax would only apply if
the money she sends you is located in the US at the time she makes
the gift. In other words if she has a bank account in the US and
makes the gift from those funds, the gift tax will apply. Otherwise
it won't.
Joe is correct that you don't normally need to report gifts from
abroad of up to $100,000 (that's the total gifts over the course of a
year). However if the gift came from the account of a corporation or partnership, it has to be reported (IRS Form 3520) if it's more than
about $16,000. This is just a report - no tax will be due.
Gifts are almost never subject to income tax. So that should not be
an issue.
--
Stu
http://DownToEarthLawyer.com
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