Hi Tax Expert,
My parents, who are from Vietnam, are planning to come to the US within the next two months to live with me. They will become green card holder, they intend to sell their property in Vietnam and gift all the proceeds to me. I understand that I need to inform the IRS about the gifted money, but I'm uncertain about any potential tax implications:
1. Do my parents need to pay any tax on the sale of their foreign property? They have used this property as their primary residence and have not generated any income from it. As far as I understand, if they have lived in the US for less than 183 days within the past three years, they would be considered non-residents and might not be subject to capital gains tax upon selling the property. Please correct me if I am mistaken.
2. Will I be required to pay any tax on the gift money from my parents?
Thank you for your assistance, and I eagerly await your response.
