topic Gift from foreign person: US Situs or not? in Get your taxes done using TurboTax

Gift from foreign person: US Situs or not?

Oliver84 — Tue, 15 Sep 2020 19:54:26 GMT

Hello - my father wants to send me a gift. He is not a US citizen, not a US resident, has not visited the US in some time. He is not a US Person. I understand there is a reporting requirement (Form 3250) if the gift exceeds $100k in value. However, I am not clear if there is a difference whether my father sends the funds from a US bank account (personal bank account) vs. from a foreign domiciled account. In either case the money will come into my US bank account. Can you please explain if there is a difference based on where the originating account is. Thanks! [father is not resident here, but opened an account when visiting, and it remains open]

Re: Gift from foreign person: US Situs or not?

DoninGA — Tue, 15 Sep 2020 20:18:40 GMT

The gift is from a foreign person regardless if the gift is from a foreign account or a US account. You are still obligated to file a Form 3520 if the gift received is over $100,000.

Re: Gift from foreign person: US Situs or not?

Oliver84 — Tue, 15 Sep 2020 20:30:06 GMT

Thanks v much DoninGA. Understood about 3520 requirement. My confusion is about US tax implication on my the gift giver (my father) - i.e. no tax if originating account is foreign, but tax assessed if originating account is US. There is some language about taxes if the gift is US Situs - but I wasn't sure if cash in US bank account is considered US Situs.

Re: Gift from foreign person: US Situs or not?

DoninGA — Wed, 16 Sep 2020 18:25:45 GMT

@Oliver84 wrote:

Thanks v much DoninGA. Understood about 3520 requirement. My confusion is about US tax implication on my the gift giver (my father) - i.e. no tax if originating account is foreign, but tax assessed if originating account is US. There is some language about taxes if the gift is US Situs - but I wasn't sure if cash in US bank account is considered US Situs.

The foreign person, your father, is giving you a cash gift. If he is a non-resident, non-citizen of the US, he is not required to report the cash gift given on an IRS Form 709.

The receiver of a gift does not report the gift received on a tax return, regardless of the amount received.

Re: Gift from foreign person: US Situs or not?

Opus 17 — Wed, 16 Sep 2020 18:13:31 GMT

@DoninGA wrote:

@Oliver84 wrote:

Thanks v much DoninGA. Understood about 3520 requirement. My confusion is about US tax implication on my the gift giver (my father) - i.e. no tax if originating account is foreign, but tax assessed if originating account is US. There is some language about taxes if the gift is US Situs - but I wasn't sure if cash in US bank account is considered US Situs.

The foreign person, you father, is giving you a cash gift. If he is a non-resident, non-citizen of the US, he is not required to report the cash gift given on an IRS Form 709.

The receiver of a gift does not report the gift received on a tax return, regardless of the amount received.

A personal bank account not connected with a business or a brokerage is not an in situs asset.

https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-us-assets-must-file-estate-tax-returns