[iwishiknow]

My mom will give me money when she sell her house abroad. The buyer can put the amount directly to my bank account here. Do I have to pay tax ( what category , how much ) . I do have proof of the house sold. ( selling contract an dother related paper - translated ).

Thank you

[AtlantaTaxExpert]

The money is a GIFT from your mother. Hence, YOU are not liable to pay any taxes on it.

If your mother is a U.S. citizen and the gift exceeds $11,000, a gift tax return must be filed. Otherwise, no taxes are due from your mother.

Keep the proof you cited available. If your bank receives more than $10,000 in any one transaction, they must file a report to the IRS, who may come back and ask you about the money.

[iwishiknow]

The money is a GIFT from your mother. Hence, YOU are not liable to pay any taxes on it.

If your mother is a U.S. citizen and the gift exceeds $11,000, a gift tax return must be filed. Otherwise, no taxes are due from your mother.

Keep the proof you cited available. If your bank receives more than $10,000 in any one transaction, they must file a report to the IRS, who may come back and ask you about the money.

Thank you for the information. Is there any limit amount on the GIFT ? And taxable avove the limit ?

Thank you

[AtlantaTaxExpert]

The first $11,000 is exempt from taxation. That's $11,000 per giver to recipient per year.

Any amount over $11,000 requires the filing of a gift tax return. No gift tax may be due if the filer decides to use part of the estate exemption. The estate exemption is currently about $1.5 MILLION, so it is likely that no gift tax will be due.

[IntlTax]

You mention that the cash will go directly from the buyer to you. I would recommend against this. If your mom is selling the house, then the cash should be deposited in her account. After she has the cash, then she can transfer it to you.

If your mom is gifting this money to you from herself, then you need to report the gift to the IRS if it exceeds $120,000. If an entity, such as a corporation or partnership, is gifting you the money then you need to report the gift to the IRS if it exceeds $10,000.

[iwishiknow]

In certain countries, it is hard to move the money out of the country, that is why my mom is trying to find someone who is willing to pay directly to me and my brothers, and avoid the hassle of dealing with the local rules and regulations.

So, basically, if I will file a gift tax return ( what IRS form is it ? ) , and the amount is below 1.5 Million ( in the same year ) , then I do not have to pay any tax ?

Thank you

[AtlantaTaxExpert]

YOU do not file the gift tax return; your mother files it, as she is the giver.

[iwishiknow]

She's not an American citizen nor she is in the USA, how can she file it ? Does it mean I will get a whatever Gift Tax Form ( may I know the form number if possible) , send to her so she can fill it up, send it back to me and I use it as an attachment with my tax return on April ?

And I also must report the gift to IRS ( how ? ) with exceed of 120K gift.

Thank you

[AtlantaTaxExpert]

If she is not an American citizen nor is she an American resident, then you have NOTHING to worry about, as the gift taxes only apply to those who are citizens or resident of the U.S.

There IS a requirement for persons receiving a gift from a foreign source to report the money; no taxes will be due. I am not sure what the form is used to make the report.

[IntlTax]

You need to report the receipt of the gift on Form 3520. Gift taxes are applicable to nonresident aliens if the property is situated in the U.S. Sec. 2511(a).

The question is when does the gift occur and is the property in the U.S. at the time of the gift? Because the cash is going directly from the buyer into your account in the U.S. the answers to these questions are a bit unclear. As I mentioned previously, I recommend that the cash go to the mother first in an account outside the U.S. and then she transfers it to your account in the U.S.

I also question whether payment of the cash to an account outside the country where the property is located could be an attempt to avoid local taxes. Further, if there are currency restrictions in that country, then this type of payment may also go against those laws. I encourage you to speak with a tax professional in the local country.

[AtlantaTaxExpert]

IntlTax has a point. You have not been real forthcoming with details, so advice is being based on generalities.

His advice to see a local tax professional is solid, though.

[NewYorker1]

You mention that the cash will go directly from the buyer to you. I would recommend against this. If your mom is selling the house, then the cash should be deposited in her account. After she has the cash, then she can transfer it to you.

If your mom is gifting this money to you from herself, then you need to report the gift to the IRS if it exceeds $120,000. If an entity, such as a corporation or partnership, is gifting you the money then you need to report the gift to the IRS if it exceeds $10,000.

Please, confirm this:
I am a US citizen, my mom is US permanent resident.
She sold an apartment abroad, and she is giving the money to me as a gift.
You are saying that if the gift doesn't exceed $120,000, the answer is NO taxes. Correct?

[IntlTax]

The situation in the earlier email was where the mother was not a resident of the U.S. and the $120,000 was the threshold for simply reporting the receipt of the gift. It had nothing to do with the taxability of the gift. It was non-taxable in that case.

In your case, your mother is a resident of the U.S. Thus, she is subject to U.S. gift taxes. If she makes a gift to you in excess of $12,000 during the year, it will be a "taxable" gift. The gift will need to be reported on Form 709. However, no tax would be due if she hasn't yet made lifetime taxable gifts in excess of $1,000,000. Making lifetime taxable gifts may increase U.S. estate taxes on her death.

[shantigoulet]

Receiving inheritance from my mother who lived in Europe.
Do I need to pay taxes on that?

I became a USA citizen.

[AtlantaTaxExpert]

Redundant question; my answer is below.

There will be no estate or inheritance taxes on the federal level.

There MAY be an inheritance tax at the state level; a phone call to your state department of taxation should provide an answer to that question.

If there is a wire transfer from your mother's estate, Form 3520 may need to be filed to account for the transfer amount, but that is an information return only; NO tax will be due.

[tatiana56]

My brother, who lives abroad and I sold our fathers apartment after his death. I broat my half ($3600)to US in cash. I reported this money at customes. Do I have to file any forms when I do my tax return?

[ebaines]

My brother, who lives abroad and I sold our fathers apartment after his death. I broat my half ($3600)to US in cash. I reported this money at customes. Do I have to file any forms when I do my tax return?

Please do not double post questions. Asked and answered here:
https://www.askmehelpdesk.com/taxes/...on-630926.html

[CARACOLA46]

My mother in another country far from usa she is 90 years old and need to sell the house.me and my brother are us citizens my mother is going to give me and my bro. $13.800 each. Believe i that is a gift, because my mom still alive and want to share with us, help me, too that i am retired.with low income.i have to report this money please help.

[ebaines]

CARACOLA46:

Before I answer your question please next time follow these conventions:

1. Don't tag a new question onto an old post, but rather start a new thread. By doing what you did responses will be pretty much limited to the people who responded to the earlier posts.

2. Please don't SHOUT, which is what typing in all caps is considered.

3. As for the gift of $13,800 to you - gifts are note reportable as income by the recipient. So you have no tax issues to worry about with respect to this gift.