Hello,
I am on F-1 Visa working through practical training. I sent my loan mount back to my father on F-1 but there is another loan in India which I will be covering on my H1b as my H1b will start from October 1st 2022. I would like to know is there any limit for H1b person to complete loan in other country?
I know gift limit is 14 k USD per person on H1B. But, the loan amount I will be paying is gift to my parents?
Thanks
@Anonymous , first Namaste
second --- I don't understand why you are talking about "gift" to your parents for paying off a loan that you incurred. There is no taxation in the USA for sending / spending your money as you please, whether you buy a house with it or pay back a loan or even help your parents with expenses. There is no reporting requirement -- for tax purposes that is.
The gift tax issue is valid ONLY for US residents , especially at their demise because the non-free gifdt amount is a debit against the life time Estate/ Gift tax.
The only place where there may be a reporting required is when you send international wire ( or bank transfer ) the bank will ask for the reason for sending money abroad -- especially if it is more than US$10,000. It is mere formality.
Also note that the monies you send out abroad , if it rests in a bank/ financial account that you have signature authority over ( even if belongs to your parents ), then it will come FBAR regime ( form 114 at wwwi.fincen.gov ).
Is there more I can do for you ?
pk