Thanks again, MargaretL. I really appreciate your research. It seems to me that just like Receiving gift from U.S Person (donor responses for tax here), Receiving gift from Covered Expatriate also qualify for “Annual Exclusion” (For Example: for 2018 Annual Exclusion is $15000 or less) right ? In other word, If U.S Resident receives LESS than Annual Exclusion threshold, he or she will has NO tax liability and NOT REQUIRE to report such transaction to the IRS ?
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
