If I received a large gift (>$100,000) from a family member living overseas (non-US person), what are my tax obligations? Is the gift taxable? Do I file Form 3520?

[userrobert-foley222]

I plan to receive a large gift from a foreign family member. They are not a US citizen or US resident for tax purposes. I am a US resident for tax purposes. Will the gift be considered taxable income? I understand I need to complete section IV on Form 3520 -- is there anything further I need to consider before accepting the gift?

[DaveF1006 · Accepted solution]

It depends. The IRS regulations state "In general, a foreign gift or bequest is any amount received from a person other than a U.S. person (a foreign person) that the recipient treats as a gift or bequest and excludes from gross income.  A foreign gift does not include amounts paid for qualified tuition or medical payments made on behalf of the U.S. person. 

Please review the reporting requirements here at large gifts from foreign persons.  Also check this link for instructions in completing form 3520.