Hello! Do non-resident aliens have gift tax exempt on gifting intangible properties? And is the money in US bank accounts considered intangible? Thanks!

[bwwyang]

I'm an F1 visa holder in the US. I file my tax return as an NRA. I'd like to transfer more than $14000 from my US bank account to my family overseas. I'm wondering whether I should pay gift tax and/or report to IRS.

[RichardG]

You are permitted the same gift tax annual exclusion ($14,000 in 2016) as a US citizen.  The consequences of a gift in excess of that amount depends on whether your are a US domiciliary for federal estate and gift tax purposes.  This test is somewhat different that the test for resident or nonresident alien for gift tax purposes.  For gift tax purposes, an individual is a resident if that person is domiciled in the U.S. at the time of the gift. 

If you are domiciliary, you have the same estate and gift tax exemption ($5.45 million in 2016) as a citizen, and your gift in excess of $14,000 will count against that exemption.  If you are not a domiciliary, your gift in excess of $14,000 will be subject to federal gift tax.  

Cash held in a US bank account is considered tangible property for purposes of the federal estate and gift tax rules.

Please follow these links for more information.

https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-us-estate-and-gift-tax-rules-...

https://www.clarkskatoff.com/practice-areas/estate-planning/estate-and-gift-tax-chart-for-non-us-per...

[bwwyang]

So if I'm in the US when transferring the money and holding F1 visa, am I considered domiciled? Thanks!

[Towerofpower]

Does a non-resident alien have a gift tax filing requirement.  The gift is $200,000 cash to a us citizen.  Also is there a exclusion amount?

[MarilynG1]

@Towerofpower Giving real or tangible property located in the United States. This is subject to the gift tax rules, even if the donor and the recipient are not U.S. citizens or residents.

Nonresident aliens who give real or tangible property located in the United States are allowed the 2020 year's $15,000 annual present-interest gift exclusion and unlimited marital deduction to U.S. citizen spouses, but are not allowed the $11.58 million lifetime gift tax exemption.

Click this link for more info on Filing a Non-Resident Alien Tax Return.