Cash gifts being transferred from a U.S. bank by a foreign alien to U.S. resident's U.S. bank account is still considered a foreign gift? Any guidance is welcome. Thanks.

[ramirezal77]

My parents who live in Colombia and who are non U.S. citizens nor residents want to send me money as a gift from a U.S. bank account located in New York City. I am a U.S resident, a green card holder. We have read form 3520 and understand all it says. However, since my parents will be transferring the money from the bank in New York City to my bank account located in Texas, we wonder if that "gift" will still be considered a foreign gift.

Any clarification on this matter will be very helpful.

Thanks!

[bine22 · Accepted solution]

If your parents live in Columbia and are not resident aliens or green card holders, it is considered a foreign gift, no matter where the bank account is.

[thomasvjohn]

Both the parties are US Residents, both accounts are US bank accounts. So it must be a Domestic gift, not a foreign gift.

[ramirezal77]

Thomas thanks for reaching out. Both parties are not US residents. Only I am a US resident, my parents are U.S. Aliens. Are you saying that because the money is coming from a US account to a US account it should be treated as a domestic gift?