Gift to nonresident not a citizen and basic exclusion (lifetime limit)

I read in https://www.irs.gov/instructions/i709#en_US_2022_publink16784xd0e1553

In Annual Exclusion there is a note which says:

"Only the annual exclusion applies to gifts made to a nonresident not a citizen of the United States. Deductions and credits are not considered in determining gift tax liability for such transfers."

Does it mean that we can not apply basic exclusion (personal lifetime limit) to gifts to nonresidents not citizens?

569

Level 15

Jan 21, 2023 8:05:56 AM

I will page @pk for this. Check back later.

Expert Alumni

Jan 24, 2023 4:32:12 PM

I just read the provision that you are referring to. The $16,000 annual gift exclusion still applies to non-residents, with the lifetime limit of $12.6M.

@ajdlue08dcd

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Gift to nonresident not a citizen and basic exclusion (lifetime limit)