North Hollywood, CA asked in Tax Law and International Law for California

Q: A relative, who is a foreign citizen, is sending a relatively big gift to buy house (in excess of 100,000). is this tax

The person that is sending the money is the father of the US citizen, but he is not an expat of the US. He was born and continues to live outside the US, but does come to visit the US only around 1 month per year. So, he should pass the IRS “substantial presence test “, right ?

If my understanding of US gift tax law is correct, the sender is the one that has to pay the tax here, but sense the sender here is a foreigner there shouldn't be any tax do in the US, right ?

So, there shouldn’t be any tax Liabilities for the recipient at the state and federal level, right? Just want be sure I am not missing something, because US tax laws can be complicated. Because the father is sending cash from outside the US, and the only thing that the recipient of the gift should do is fill tax IRS informative form 3520, right ?

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1 Lawyer Answer

A: Foreign transfers of funds into the US are not taxable.

They are reportable on form 3520.

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