Gift Tax Question

[what_a_disasta]

I was wondering if any of you know the answer to this:

If I were to recieve a gift of 250k from my Austrian grandmother. Is that money taxable in the US?

[blue_sky]

In general, unless you want to marry your grandmother, yes.
There may be exclusions for particular uses (for example if she’s giving you the money for tuition)

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

[blue_sky]

In general, unless you want to marry your grandmother, yes.
There may be exclusions for particular uses (for example if she’s giving you the money for tuition)

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

[(former)FormerSanDiegan]

blue_sky –

The link you reference refers to gift tax, which is filed by the payee, not the recipient. There is no actual tax paid, it is simply using up the estate tax exclusion for any amounts over 11K per person, per year. If the grandmother were a US citizen, she would file the paperwork, not him. I don’t see where this addresses a foreigner (non-US taxpayer) making a gift to a citizen.

Note: Moving $250K across borders via wire transfer or otherwise, will likely be monitored by the feds. It is likely to raise flags as potential money laundering.

I think this issue is best handled by a legal professional, not a message board.

[(former)FormerSanDiegan]

blue_sky –

The link you reference refers to gift tax, which is filed by the payee, not the recipient. There is no actual tax paid, it is simply using up the estate tax exclusion for any amounts over 11K per person, per year. If the grandmother were a US citizen, she would file the paperwork, not him. I don’t see where this addresses a foreigner (non-US taxpayer) making a gift to a citizen.

Note: Moving $250K across borders via wire transfer or otherwise, will likely be monitored by the feds. It is likely to raise flags as potential money laundering.

I think this issue is best handled by a legal professional, not a message board.

[blue_sky]

Wow, my bad! I read right over that section and reversed donor and donee in my head. This would be the appropriate link:

http://www.irs.gov/newsroom/article/0,,id=107815,00.html

“The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.”

[blue_sky]

Wow, my bad! I read right over that section and reversed donor and donee in my head. This would be the appropriate link:

http://www.irs.gov/newsroom/article/0,,id=107815,00.html

“The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.”

[(former)FormerSanDiegan]

… however, if you receive a gift from a foreigner in the amount over 100K you have to report this on form 3520 (section IV).
http://www.irs.gov/pub/irs-pdf/f3520.pdf
There is probably much more to this issue as well. I recommend a consult with a CPA.
But if you decide not to consult one, then remember the IRS requires you to share 50% of the gift with the members of Piggington with the word Former in their moniker.

Disclaimer: The above is not intended to be construed as legal or tax advice. Any further use or rebroadcast requires the express written consent of major league baseball. Side effects include drowsiness, itching, and gas with oily discharge.

[(former)FormerSanDiegan]

… however, if you receive a gift from a foreigner in the amount over 100K you have to report this on form 3520 (section IV).
http://www.irs.gov/pub/irs-pdf/f3520.pdf
There is probably much more to this issue as well. I recommend a consult with a CPA.
But if you decide not to consult one, then remember the IRS requires you to share 50% of the gift with the members of Piggington with the word Former in their moniker.

Disclaimer: The above is not intended to be construed as legal or tax advice. Any further use or rebroadcast requires the express written consent of major league baseball. Side effects include drowsiness, itching, and gas with oily discharge.

[lniles]

Is that 250k euros? Dude you got a sweet granny.

[lniles]

Is that 250k euros? Dude you got a sweet granny.

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