[quiness1]

I am a US resident/citizen and my friend wishes to gift me 100k. He was a US resident but has been living in the UK for the past 8 years. From my understanding, he never renounced his US citizenship. What is the BEST way to go about receiving this 100k gift? What are the tax implications?

Any and all advice is GREATLY appreciated, Thank you for your time

[excon]

What are the tax implications?

Hello q:

Have him write you a check.. You'll have to pay income taxes on the money.

But, there's more to it than that, isn't there.. He wants YOU to send him some money FIRST, then you can have yours... Am I close?

excon

[tickle]

Hello q:

Have him write you a check.. You'll have to pay income taxes on the money.

But, there's more to it than that, isn't there.. He wants YOU to send him some money FIRST, then you can have yours... Am I close?

excon

I don't know why someone would give up there US citizenship voluntarily. If you do give up your rights you forfeit your benefits such as SSI. Coming back to the US every six months may be tedious and I guess from EU expensive, but why would someone do that voluntarily?

Exxy, you are probably right again.

Tick

[odinn7]

Hello q:


But, there's more to it than that, isn't there.. He wants YOU to send him some money FIRST, then you can have yours... Am I close?

excon

I thought this too but then got confused. Are the scammers also being hit by the poor economy and they can't even afford to offer huge fake amounts any more? Usually their amounts are over $250,000.

[quiness1]

Excon,
Thanks for your reply but I'm not sure what you mean by, "But, there's more to it than that, isn't there.. He wants YOU to send him some money FIRST, then you can have yours... Am I close?"
Why would I have to pay income taxes on a gift? Are these special tax regulations in the UK?
The money is completely legitimate and already taxed on the UK end, its simply a matter of what's the best method of receiving these funds to eliminate or minimize any tax burden.

[excon]

its simply a matter of whats the best method of receiving these funds to eliminate or minimize any tax burden.

Hello again, q:

We get a lot of people who have been scammed here, and their story's are similar to yours... Glad I was wrong..

HOW you receive the funds doesn't make them taxable or not.. Just the fact that you RECEIVED them makes them taxable, IF they are indeed taxable.. I think you have to pay gift taxes on the money, no matter what taxes have already been paid. I'm happy to be wrong.

excon

[tickle]

There is a US UK tax treaty on gift tax and it is explained here; if you can't access this link here then go to US UK tax treaty in Google

Uniset.ca/misc/us-uk1980.html

[quiness1]

Thanks Excon,
From my understanding I a person can give or receive a $13k gift tax free and would be liable to pay taxes on anything over, is this correct? Is there a way to not pay taxes on the gift? And what do you mean when you said, "IF they are indeed taxable"?

[quiness1]

Thank you tickle for the reference...
I am new to this forum, is there a way to send private messages or is everything public?

[excon]

"IF they are indeed taxable"?

Hello again, q:

I'm a LEGAL expert. I thought you were being scammed, that's why I answered. I'm NOT a tax expert. What I gave you was my OPINION, which is why I qualified it. We have some tax experts here, and I'll bet they'll be along to answer your question. But, I wouldn't argue with what you came up with.

excon

[Fr_Chuck]

They would need to send you smaller amounts over many years , so it is not considered a gift. But bank wire transfer is the safest way, to send larger sums of money