[Verisyse]

I am permanent resident in the US (green card holder) but not a US citizen. My father, who is not a US permanent resident/citizen and lives overseas, would like to gift me money by sending it as a wire transfer from his account overseas to mine in the US. Assuming the amount is under $100K, what would be my IRS tax filing/declaration requirements, if any? Would I have to pay any taxes?

The money’s going to be a loan, but would that make a difference as to whether it’s stated as a gift or loan?

Any help would be appreciated!

[MukatA]

In the U.S. the receiver of gift does not pay any gift tax. Your U.S. Tax Return: The U.S. Gift Tax

[Verisyse]

Thanks, MukatA! Just so I get it right, it says

A receiver of the gift may be required to file Form 3520 to report the gift if the gift is from foreign sources and the amount exceeds a certain limit."

It doesn't state what the amount it. Does it change from year to year?

And this:

So the receiver of the gift from foreign sources must file File 3520 Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts if the amount if the total gifts received in 2007 is more than $100,000.

How accurate is this? And just so I'm clear, I don't have to file 3520 if it's under $100,000? What if it's $100,000 on the dot?

Sorry for the additional questions, but I don't want to get into trouble with the IRS.

[Verisyse]

Dang... I was hoping to get a more comprehensive answer on this. Unless it really is that cut and dry that the receiver in the US won't get taxed or questioned when it comes to receiving a wire transfer from overseas.

[MukatA]

There is no tax on the gifts received. However, IRS may want to make sure that it is actually a gift so keep proper record.

[Verisyse]

And what would be considered acceptable record of this gift? Just a letter from my parents? Get it notarized? Etc?

[Verisyse]

So, no one knows what's considered proper records for a transaction like this? Please help! :confused: