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Are there any taxes on gifts from relatives in other countries?

September 26, 2008


From:  Nicole
Date:  20 Mar 2008

Dear Mr. Gray:

I am a US citizen and I would like to know what the limit is of money I can receive from my relatives abroad. Are there any tax consequences to me?

Thank you for your attention.

Answer

Date:  02 Apr 2008

Hello Nicole,

Receiving a gift is not subject to income tax.

Most gifts of intangible property by a nonresident alien are not subject to U.S. gift tax. (Internal Revenue Code Section 2501(a)(2).) Your relatives should see a U.S. tax consultant about structuring these gifts to avoid being subject to U.S. gift tax.

If you receive a gift of more than $100,000 from a non-resident alien, the gift must be reported on Form 3520. The form has the same due date as your individual income tax return. You can get a copy at www.irs.gov.

Good luck!
Mike Gray

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Are there any taxes on gifts from relatives in other countries?

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