@KRM_444 wrote:
Hello all,
I have a quick question:
Suppose a parent in Kenya, Africa is going to send their child in America $500k-1M. The parent is not a US citizen, but the child is a US citizen. What are the tax implications for both parties? Should the parent send it as a “gift” or not, and why?
- I did some googling and it said that is you are a US citizen and you are receiving $$ from a parent who is NOT a US citizen, then you do not have to pay taxes. However you will need to file a 3520.
- I couldn’t find any information about being a resident in Kenya, Africa from PWC (informations unavailable)..
Since your parent is not a US citizen or US resident alien and not living in the US they have no obligation to report the gift to the IRS.
As the recipient of the gift you do Not report the gift on a US tax return, regardless of the amount received. However, since the gift is from a foreign person you must report the gift received to the IRS using Form 3520 if the gift received is more than $100,000.
