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    draak's Avatar
    draak Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 11, 2009, 10:54 AM
    Tax on Gift from Abroad
    Hi all,

    I'm planning to give my brother in the US some money to help him out a bit. I want to know if there are any tax implication we should know about.

    He is a US resident (green card holder). I am not a US resident nor a US citizen. I am from the UK.

    I plan to transfer the money directly to his bank account. Will he be taxed as receiver of the money? Is there a limit to how much I can give? I'm thinking of giving him $30,000. Are there local state taxes we should consider? He lives in California.

    Actually it is a loan but he will only pay me back whenever he can so no definite time for this "loan".


    I appreciate any advice. Thank you.

    Cheers,
    Draak
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 11, 2009, 11:08 AM
    There ARE gift taxes on such gifts, but only if both parties are U.S. citizens.

    If you are a U.K. citizen, there are NO U.S. gift taxes due from you, and HE has no tax liability at all, though he may need to submit paperwork to account for the origin of the money.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #3

    Jun 12, 2009, 07:43 PM

    If it is a loan, no gift taxes should be due.
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