Are there any tax implications to receiving cash gifts from Foreign Persons in excess of $100K?

[Anonymous]

Hope this questions find you all happy and healthy!

I wanted to know if there were any tax implications in me (US citizen) receiving cash gifts (wire transfer) from my father (non-US citizen residing in Germany) that are in excess of $100K?

From what I have found online on IRS site, the only implication is that I would need to report the gift on form 3520. Is there anything else that needs to be taken into account? Examples:

• Will my father need to pay any sort of tax on this gift?
• Will I need to pay any tax on this gift?
• Can I use this money to purchase real-estate in my name or would this then be considered a tangible asset that was gifted (even while technically the money was transferred to my account and therefore the property was purchased with my funds...but wondering if IRS would consider this scenario as some sort of pass-through arrangement etc)?
• Is there a limit that would change any of the above (i.e. gift >$500K or >$2MM). I saw there is mention of a lifetime limit of $11MM?

Thanks so much for any answers you can provide for the above.

Stay healthy!

[ErnieS0]

Gifts are not taxable to the recipient. You do have to file Form 3520 to report a gift of more than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate).

Your father will not pay any U.S. gift tax if he is a U.S. nonresident alien and it is not a gift of real and tangible property situated in the United States, such as money from a U.S. bank account.

You will not have to pay any tax on the gift.

You can do anything you want with a gift. A gift is a gift.

The lifetime exclusion only applies if your father is subject to U.S. gift tax laws.

Related Resource:

• Frequently Asked Questions on Gift Taxes for Nonresidents not Citizens of the United States

[fffggghhh]

Hi @ErnieS0 ,

I am not the original poster, but I am in the same situation and have a question, if you don't mind me asking:

I don't see any field on the 3520form where I could put in my relative's name. Box 2a says "Foreign Trust name" - but my money was gifted by my father as a person not as a trust.

Do I put in his name in Box 54?

Thank you

[fffggghhh]

I am not the original poster, but I am in the same situation and have a question, if you don't mind me asking:

I don't see any field on the 3520form where I could put in my relative's name. Box 2a says "Foreign Trust name" - but my money was gifted by my father as a person not as a trust.

Do I put in his name in Box 54?

Thank you