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Money overseas transfer from foreign national mother to US born child - taxes?

Asked May 27, 2012, 08:01 PM — 1 Answer
Hi there,

I have researched similar questions on this forum, but I think my case is unique enough to warrant a new thread... My apology if this has been asked before. Your help will be very appreciated!

The facts:
  • I am living in America as an H1B visa holder.
  • My whole family is in my home country. My youngest brother was born in the US 12 years ago. My mother and father were in the US on J visa when he was born. They left the US months after that.
  • My father has since come back to the US on short trips with B1 visa several times.

The goal:
To send money from home country to US to buy a house (~300k). The sender would be my parents who are foreign nationals. The recipient would be my brother, a 12 year-old US citizen who is not yet in the US. The recipient cannot be me, because my home country would not allow the transfer to happen.

The questions:
  1. Will anyone have to pay any tax?
  2. Will someone need to fill out form 3520? If so, can I do it on my brother's behalf, since he is still too young? Do I have to claim any special relationship with him in order to do it?
  3. I plan to open an account for my brother using his ID and SSN. I was told by a bank that this is allowed. He does not have to be present in the US for this transfer to happen, correct?

Thank you!!!

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1 Answer
AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,866, Reputation: 3723
Senior Tax Expert
  
#2

May 27, 2012, 10:15 PM


1) No.

2) You CAN complete the Form 3520 for your brother.

3) Yes, IF you can access his SSN.
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