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Level 1
posted Sep 17, 2019 2:57:46 PM

Gift from parents ($CAD -> $USD)

If my parents were to convert $CAD from a Canadian bank and send me $USD into my US bank account, will this be considered as taxable income in the US? Does this depend on the amount? I'm thinking of using Transfer Wise to do this. 

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3 Replies
Level 15
Sep 17, 2019 3:03:33 PM

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

 

If you receive a gift of over $100,000 from a foreign individual then you have to report the gift on IRS Form 3520.  This is an informational form only and not a tax return.

 

Level 1
Sep 18, 2019 8:22:48 PM

The 100k of gift that i have to report, does this amount get reset every year?

 

For example, If i receive 80k this year and 80k next year, do i have to report?

 

do you happen to have the source where you found this answer?

Level 15
Sep 18, 2019 8:33:31 PM


@kvipark wrote:

The 100k of gift that i have to report, does this amount get reset every year?

 

For example, If i receive 80k this year and 80k next year, do i have to report?

 

do you happen to have the source where you found this answer?


For reporting a $100K or more foreign gift?

The 3520 is an annual report for each year such a gift is received.

Here are the 3520 instructions and who must file.

https://www.irs.gov/pub/irs-pdf/i3520.pdf