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 ?

Related Topics:
1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO

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

They are reportable on form 3520.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.