Received foreign currency in foreign bank account from parents as a gift, what forms do I need to file?

I opened a new foreign bank account in 2024 so that my parents could transfer some money from their foreign bank account to it as a gift (to help me purchase real estate in my home country). The amount exceeded $150,000. It stayed in the account for a month so less than $100 of interest accumulated. Said money was sent to the seller for the purchase before 12/31/2024. My questions are:

1. Do I need to report the gift with Form 3520?

2. Do I need to file an FBAR report?

3. Do I need to file form 8938?

4. Does the gift count as income? If so, would it be taxable?

5. I'm assuming the interest is taxable? Does "spending the money on a purchase" count as a deduction?

Thank you!!

4547

Expert Alumni

Jan 30, 2025 9:18:55 AM

Yes, in reporting this gift:

This does need to be reported in page one, part 111 in form 3520.
It does need to be reported on an FBAR report since the money amount exceeds $10,000.
You are required to file form 8938 since the amount exceeds $150,000.
You are not required to declare your gift as income.
The interest is taxable and you may not deduct as a purchase.

Why sign in to the Community?

Received foreign currency in foreign bank account from parents as a gift, what forms do I need to file?