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Level 3
posted Jul 25, 2018 9:47:27 AM

Gift from a foreign persons (parents living abroad)

Hi

I am a green card holder and my parents might give me a gift (less than $50,000). I learned from IRS document that there is a requirement for filling the gift over $100,000. If I receive a gift for less than $100,000, what kind of obligations I have. Does it need to be reported in any other document? As there is no tax on gift amount, I assume that this does not go into my tax return for this year. 

I also have two additional questions.

1) If I and my wife are filing the taxes jointly, will she get the similar amount of exemption

2) Does this $100,000 limit is per year or per lifetime. If it is lifetime limit, I want to be able to carefully document and monitor the limit (though I do not think I will reach this limit ever)

 

I want to make sure that I fully understand my obligations so that I am prepared when I do the taxes. I also want to make sure that I am following all the rules and regulations properly. Your assistance is highly appreciated. 

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1 Best answer
Level 15
Jul 26, 2018 6:05:20 AM

Gifts received from an individual are not reported on a tax return, regardless of the amount received.

 

Gifts received from a foreign individual are only reported to the IRS if the amount received on an annual basis if over $100,000.   Use IRS Form 3520 to report the gift  from a foreign individual if over $100,000.

 

The requirement for reporting this type of gift is per individual.

 

If the gift is $100,000 or less then you have no requirements to report this gift.

2 Replies
Level 15
Jul 26, 2018 6:05:20 AM

Gifts received from an individual are not reported on a tax return, regardless of the amount received.

 

Gifts received from a foreign individual are only reported to the IRS if the amount received on an annual basis if over $100,000.   Use IRS Form 3520 to report the gift  from a foreign individual if over $100,000.

 

The requirement for reporting this type of gift is per individual.

 

If the gift is $100,000 or less then you have no requirements to report this gift.

Level 3
Jul 26, 2018 6:47:00 PM

Thank you very much for your detailed and clear response. I appreciate that.