forms 3520 and 709 question

Forum|Forum|2 years ago
January 11, 2024
1 reply
88 views

Three quick questions about form 3520 and 709

1. If I transfer money to myself above 100k between two different US bank accounts or between one US bank account and one oversea bank account. Do I need to fill form 3520? I assume no need because it is within my name.

2. I assume form 3520 is only for US person. If I become non-US person (non resident alien, for example), can I directly ignore 3520 in term of money transfer threshould?

3. If I transfer money less than 167000 to my non-US citizen wife, I assume I do not need to fill in form 709, is it correct? I think money transfer belongs to present interests?

Please correct me if any of my understanding is wrong. If not, pleae tell me they are all correct.

Many thanks,

TurboTax Deluxe Online

Opus 17

Level 15

Moving money that you own, from one account to another that you own, is not reportable.

However, if you are a US person and you own a foreign account worth more than $10,000 at any time during the year, you must file an FBAR report. If you own a foreign account with a balance above a certain limit on the last day of the year, you must file form 8938 as well.

https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

Form 3520 is used by US persons to report gifts from non-US persons. It would never be used for money transfers from yourself to yourself. If you are not a US person, you are not required to file this form (but you may have other gift tax requirements in your home country).

The exclusion for gifts by a US person to a non-resident alien spouse was increased to $175,000.

https://www.irs.gov/instructions/i709

Helen123Author

Level 5

many thanks. I think you mean I do not need to file 709 as well if I do not transfer money more than 175k to my oversea spouse, right?

DaveF1006

Level 15

Yes. That is correct. The 709 instructions state the annual exclusion for gifts made to non citizen spouses is $175,000. You would not file a 709 Gift Tax return if the amount is less than $175K.

@Helen123

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