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ktolman · Jan 24, 2011, 04:45 PM

If my dad wants to send money from a foreign country to me, as a gift.. and the amount is roughly $50,000... do I have to pay taxes on that? Or claim it as income next year on my taxes? He is not a US citizen or resident.. I'm a US citizen.. just wondering what is the best way to go about transferring money to me, while avoiding paying taxes, or being taxed on the amount I receive?

smoothy · Jan 24, 2011, 05:03 PM

You sound like you are trying to break the law... and you will get caught. That much money changing hands raises a lot of flags... actiually a small fraction of that does.

ktolman · Jan 24, 2011, 05:09 PM

I'm not trying to break the law. I just didn't know if I would be taxed on a gift from my Dad. Just wanted information. If you know, would you mind answering my question? Will I be taxed on money that my dad transfers to my account in the US? Because if I'll get taxed, I would rather him not lose that money, and I would rather not receive it. Anyone know how that works?

smoothy · Jan 24, 2011, 05:13 PM

Originally Posted by ;

tolman does not find this helpful : didnt answer my question

Now dumbazz... read the site rules... because you broke them. You can't violate site rules because YOU don't like hearing the truth... jerk

What I stated is in fact factual. Yoour opinion isn't a legitimate or valid reason for a not helpful.

And by the way... I report rude idiots like you to the Site Admins...

If you are trying to dodge taxes that are due... that is breaking the law. And trust me... the IRS is the most powereful and relentless collection agency that exists.

YOu are American... you get that sort of money in one shot. Its an income and the feds will know you have it before you even know it's there. Fail to report it and you open a can or worms you really don't want opened.

THAT IS INFORMATION.

Just because its not what you want to hear changes nothing.

ANYTHING that excedes just a couple thousand dollars or repeated amounts raises flags put in place to catch criminals and money laundering operation that are... trying to avoid taxes.

But then... I bet you know more than the IRS does... have fun when they have a field day at your expense.

ktolman · Jan 24, 2011, 05:51 PM

Wow.. OK! Just wanted to save my dad money.. it was just a question. Sorry for being so offensive to you!

smoothy · Jan 24, 2011, 06:00 PM

Well... I take not helpfulls for what they are... a slap in the face... I after all do not get paid to dispense advice... like everyone else here... we volunteer and do it for free.

That much money IS going to trigger banking industry reporting... even IF you split it up.

And that much IS going to trigger tax penalties. There is limits to annual gifted amounts that aren't. But it would take several years to gift that much.

MukatA · Jan 24, 2011, 06:02 PM

Originally Posted by ktolman

If my dad wants to send money from a foreign country to me, as a gift.. and the amount is roughly $50,000... do I have to pay taxes on that? Or claim it as income next year on my taxes? He is not a US citizen or resident.. I'm a US citizen.. just wondering what is the best way to go about transferring money to me, while avoiding paying taxes, or being taxed on the amount I receive?

In US the receiver of gift does not pay any tax. Also since your father is a foreign person, he is not covered by US taxes. You can get money from your father without any tax implications.

smoothy · Jan 24, 2011, 06:41 PM

Originally Posted by MukatA

In US the receiver of gift does not pay any tax. Also since your father is a foreign person, he is not covered by US taxes. You can get money from your father without any tax implications.

Um.. then why did the IRS tax me when my mother gifted me 36,000 dollars... and yes... they did on my returns that year.

smoothy · Jan 25, 2011, 06:23 AM

Just wanted to toss this in... since there is not a unanimous consensus here...

Proceed with caution.

I have several friends who between them own a several commercial properties they rent out... and others own a chain of restaurants... all have had to jump though hoops moving money here from overseas... to avoid getting raped on taxes after getting screwed with bank fees and exchange costs.

All of these people have their own Lawyers on retainer, All are fairly wealthy... none are clueless. THey did after all build these businesses up after immigrating here. None were wealthy before coming here origionally.

MY recommendation is consulting a tax professional... each persons tax liabilities may be different... and many taxes are based on your taxible income. None of which you ever should disclose online. You might find that if you are a student with no income the hit might not be as great as you fear.

AS far as reducing the banks cut... shop around... while there is a daily international exchange rate posted at close of trading each day... reality is actual rates vary from bank to bank by several points, and exchange fees will not be the same bank to bank. That can add up to significant ammounts.