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    calviny55's Avatar
    calviny55 Posts: 6, Reputation: 1
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    #1

    Aug 28, 2008, 05:01 PM
    Overseas Cash Gift for Escrow? Tax implications?
    If I (US citizen) am receiving a cash gift from a non US resident/citizen, the transfer is made in foreign bank account to my foreign bank account. Then I use that amount as downpayment on a house, sent directly from my foreign bank account to the escrow company. Is there any tax complications? Do I need to file anything w/ the IRS? Such as the form 3520?
    Any caveats?
    Thanks in advance
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #2

    Aug 28, 2008, 07:06 PM
    If you are a US citizen and you are receiving a cash gift from a non US resident/citizen and the amount is more than $100,000, then you must report the receipt of the gift on Form 3520, regardless of where the cash is subsequently transferred.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Sep 5, 2008, 02:55 PM
    In the U.S. there is no tax on the gifts received. However, since the money is coming from foreign source, the IRS wants to make sure that it is a gift so you need to file Form 3520.
    Read Your U.S. Tax Return: The U.S. Gift Tax
    calviny55's Avatar
    calviny55 Posts: 6, Reputation: 1
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    #4

    Sep 5, 2008, 04:33 PM
    Thank you both of you for chiming in.
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