Does a US non resident (F1 visa) tax payer, needs to pay gift tax on amount (around $50K) which is not earned in US, but is transferred to other account based in US?

[hsc444]

An amount of around $50K was deposited into my bank account from an international bank account (not in US). This amount is not earned in US, and hence me on F1 Visa, do not need to pay taxes on this amount. But now if I transfer that amount to another person's account, who is a US citizen, holding a US based bank account, will I be taxed for this same amount (~$50K)? Does this fall under gift tax? Do I need to submit some different kind of form apart from my regular 1040NR-EZ?

[Carl]

The following is quoted directly from the IRS website https://www.irs.gov/businesses/gifts-from-foreign-person

If you are a U.S. person who received foreign gifts of money or other property, you may need to report these gifts

In general, a foreign gift is money or other property received by a U.S. person from a foreign person that the recipient treats as a gift or bequest and excludes from gross income.  A “foreign person” is a nonresident alien individual or foreign corporation, partnership or estate.

You are not a U.S. person. So I don't see any reporting requirement for anything here. However you may want to read the entire page of the referenced site I got the above from, to make sure I didn't miss anything.

[hsc444]

I understand that I don't need to file form 3520. The person to whom I am transferring the $50K amount will be filing the 3520 form as he (US person) is receiving the amount from non-resident person (me) and the instructions says that. But while reading form 709, which is applicable to resident as well as non-resident (non US person) who are giving out gifts. Hence my question was related to the second part, where I (non US person) transfers $50k amount from my US based account to a person who is US citizen, I should still be filing the gift tax return on $36K ( as limit being $14K), right? I

This is quoted from form 709 instructions at : <a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i709#idm140101486080960">https://www.irs.gov/instructions/i709#idm1...>

Nonresidents not Citizens of the United States

Nonresidents not citizens of the United States are subject to gift and GST taxes for gifts of tangible property situated in the United States. A person is considered a nonresident not a citizen of the United States if he or she, at the time the gift is made, (1) was not a citizen of the United States and did not reside there, or (2) was domiciled in a United States possession and acquired citizenship solely by reason of birth or residence in the possession. Under certain circumstances, they are also subject to gift and GST taxes for gifts of intangible property. See section 2501(a).

If you are a nonresident not a citizen of the United States who made a gift subject to gift tax, you must file a gift tax return where:

You gave any gifts of future interests,

Your gifts of present interests to any donee other than your spouse total more than $14,000, or

Your outright gifts to your spouse who is not a U.S. citizen total more than $148,000.

[Carl]

Sorry, I thought you were the non-resident non U.S. person receiving the gift. If I understand correctly now, you are a non resident non U.S. person who is giving the gift, to a U.S. person. If that's the case, then as I interpret you post above, where it reads, "If you are a nonresident not a citizen of the United States who made a gift subject to gift tax, you must file a gift tax return" then you are required to file a gift tax return.
Do understand that no taxes will be paid by the giver. But in this case, I don't *think* the U.S person receiving the gift will be taxed. But I can't state that with absolute certainty. What I can state with a high degree of certainty, is that you are required to file the gift tax return as the non resident non-U.S. person giving the gift to a U.S. person.

[Carl]

The term "gift tax" is actually a misnomer. There is no such thing as a "gift tax" per-se. One only files what is called a "gift tax return" with the IRS, when they give a gift of more than $14K to any one individual in a single tax year. The amount reported is subtracted from the non-taxable inheritance the gift recipient may receive from the giver, at the time of the giver's passing. No "tax" is actually paid.

It is the giver that is required to file the gift tax. The recipient doesn't have to do a single thing other than telling the giver "thank you", at most.

[hsc444]

Thank you for your response. So I believe I do not need to file tax form 3520 for the international amount transfer in my account as I am not US person for tax purposes, right?. For the second part, I will have to file form 709 to report extra $36K (limit being $14K) on total transfer of $50K. Thus I will be taxed for $36K, right?