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Cash gift from covered expatriates
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Cash gift from covered expatriates
No, you don't have to file F3520. Per the form's instructions, you should file F3520 if you received:
- Gifts or bequests valued at more than $100,000 from a nonresident alien individual or foreign estate (including foreign persons related to that nonresident alien individual or foreign estate); OR
- Gifts valued at more than $16,076 for 2018 (adjusted annually for inflation) from foreign corporations or foreign partnerships (including foreign persons related to the foreign corporations or foreign partnerships)
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Cash gift from covered expatriates
Best Regards,
Yankevo
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Cash gift from covered expatriates
Thank you for the clarification and you are right... I was simply focusing on the form itself... As a receiver of a gift form covered expatriate, you don't have to report if you received $15,000 or less. You would have to pay tax on the gift in excess of the $15,000. That would not be on F3520, you would file an Estate tax return. More details here, if you'd like.
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Cash gift from covered expatriates
In addition, do you mind to explain the definition of GIFT ? I am sure some people may same confusion here. For example, if I transfer (via my bank account) $20000 to my friend’s bank account in March of 2018, two months late, same friend transfers $15000 back to my bank account (same bank account which I initiated transaction 2 months ago), Will the whole process ONLY use $5000 of my “Annual Exclusion” ?
Thanks
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Cash gift from covered expatriates
You are correct- annual exclusion ($15,000) does apply in your case.
As to the gift - it is on annual basis... you can give $15K to a person during the year... it can be done in increments, as long they don't exceed the annual amount. Theoretically, if you send 20K to a friend and that friend does send back $15K, then yes - you only gave $5k. But practically, be sure to annotate each transfer so that you can easily prove to the IRS ( if needed) which transaction is gift and which isn't.
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Cash gift from covered expatriates
Regards
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Cash gift from covered expatriates
You are correct - not required to file F709 and yes for having sufficient documentation.
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