Hello, my dad (Non-US Citizen) would like to give me (I am a US Citizen) and my wife 50k for our new house, he does not have the cash but is going to sell one of his properties in Mexico to a US company and the US company will send the money to my account. Do I need to report this transaction? Is it still consider a gift?
I have been trying to look online but I could not find any information.
My dad will pay all the reportable taxes in Mexico.
Thanks for the help!
No matter how they get the cash it is still a gift to you which is not reported on an income tax return.
Thanks for your answer. Do I need to complete a form or how do I report it as gift?
If your parents are not US citizens or residents of the US, there are no US tax implications for them.
If you, as a US person, receive a gift of more than $100,000 from a foreign person, you are required to submit a Form 3520 to the IRS. Form 3520 is an informational form only. You do not report a gift received on your personal tax return, regardless of the amount received.