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    siddharthmallick's Avatar
    siddharthmallick Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Oct 17, 2008, 01:26 PM
    Tax on gift from Parents
    Hello

    My parents wish to send some money from India to help me make a downpayment on a property. How would I have to declare this, if I need to?


    I understand there is a 12K limit per year per person, so if they wer to give me 12K and my 12K, would we have to file taxes separately or would Married filing jointly still work?

    Thanks

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

    Oct 17, 2008, 02:34 PM
    You will have NO OBLIGATION to pay tax or even declare in the income on your tax return.

    You MAY have to report the income when you receive it via wire transfer, but that is a relatively simple process that is handled at the bank.

    No gift taxes are due because your parents are NOT U.S. residents.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Oct 17, 2008, 09:16 PM

    If your parents are not U.S. person, then there is no limit to the amount of gift. Also, the receiver does not pay any gift tax.
    If the gift amount exceeds $100,000 you will file Form 3520 (for information only).
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