[z3love]

An inheritance that was given to me from an overseas individual I am not related to, has been decided to be split into three pieces, one of which will be mine. I repeat that the money in question has legally been decided in country to be entirely mine, and it is my choice to split the proceeds of this inheritance between us. When my portion is wired here to me, is there any IRS or government forms or information I need to give the government about this transaction to avoid taxes and any legal issues?

[tovale]

I want to transfer money(40,000$),with my bank,here in New York, to my brother,in israel,to but an apartment in israel.
I paid tax for this money.
Is it going to be a problem with IRS?

[AtlantaTaxExpert]

No, it should NOT be a problem.

[hamlet004]

I don't know if it is too late to weigh in on this and ask a question, but I am confused about Intltax's answer.

"This risk can be avoided by you opening a foreign bank account, having your mother transfer into your foreign account, and then you wire transfer the funds to your U.S. account."

If this person opens a foreign bank account and his mother wires the money to that account, and then HE wires it to his US account, won't it be difficult to prove this money was a "gift" since he will be in essence sending the money to himself? Also, once he opens the foreign account, won't be liable for taxes/explanation in THAT country for the money that his mother has wired to him?

I'm just wondering if doing it this way invites a lot more paperwork and a lot more problems- not to mention this person would have to travel overseas to open the account... no?

Thanks in advance...

[AtlantaTaxExpert]

There are NO taxes on these types of transfers, at least from the U.S. side of the equiation, and if the transfer is from one account to another account that you both own, then proving the gift is not even an issue, since the IRS has no way of determing from where the money originates outside of the U.S.

[zhao_salem_98]

If the foreign donor gives 50K twice in separate tax years, then the donee doesn't have to report to IRS anything, right?

[AtlantaTaxExpert]

Yes, that is correct.

[Food_Stamp]

Will a gift $5k cancel the food stamps for a low income U.S. student?
(he has $1k/month income and he is receiving that gift)

[AtlantaTaxExpert]

That is NOT a tax question, but rather a regulatory question as to whether a gift negates someone's eligibility for food stamps. For this reason, I cannot answer.

[austinjean6]

I need some tax advice.. my mother is looking to gift me a property in the UK. I am a US citizen by naturalization. The property is worth approximately $450K and she has held it for 15 years. The original value of the property was $200K. She has spent some money over the years on the house.. it has never been rented out or declared as a rental property in the UK. When/if she transfers it to me she will have to pay capital tax on the transfer of approx $50K. What are the capital gains taxes I would pay if I was to dispose of it without living in it (is it valued at the original value at time it was inherited by her? Or at the final value at time of transfer to me ? Can I deduct the capital gains tax she paid in the UK? I I was to live in the house for 2 years ywould I avoid the capital gains tax ? (during which time I would not be resident in the USA. WOuld I have to declare this as Income or capital gains tax if I was not returning to the US ? What would happen if in the interim I rented the property out ? Would that impact the final valuation for capital gains tax ?

Many thanks for any advice anyone can give me.. I would also be interested in any recommended reading or sources of tax advice going forward.

[AtlantaTaxExpert]

Generally, you would pay capital gains tax on the DIFFERENCE between the sales price (but ONLY when you sell it) and the purchase price of $200K plus the cost of the improvements.

There will be NO tax due on the gift itself because your mother presumably is NOT a U.S. citizen.

If you returned to the U.K. and lived in the house for at least two years, then the capital gain would likely be exempt under the exclusion for the sale of primary homes.