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    tsvetana92's Avatar
    tsvetana92 Posts: 1, Reputation: 1
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    #1

    Nov 9, 2010, 08:22 AM
    Foreign money transferred to an US account
    Hi,If I were to receive 50,000.00 US dollars as gift from abroad
    a) do I need to declare the money in my US tax returns?
    b) will there be tax implications?
    I am an US citizen (naturalization). My father, who is not an US citizen, nor an US resident, and lives in Bulgaria, wants to help me and my children by giving us 50,000.00 US dollars. I heard about a taxation of such amount of money. What is the real legal issue? What is better procedure for us?
    1. My father could wire transfer the money (50,000.00) from his Bulgarian bank account to my US bank account, or
    2. My father could deposit the money (50,000.00) in my existing Bulgarian bank account, and from there the money to be wire transferred to my US bank account, or
    3.My father has make a few wire transfers to my and my two children accounts of smaller amounts of 10,000.00 (as I heard the money has to be less than 10,000.00 per transaction in order not to be a subject of taxation)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Nov 9, 2010, 09:32 AM
    a) No.

    b) There are NO tax implications, as the person who RECEIVES the gift has no tax reporting requirement, and, in your case, the giver (your father) is NOT a U.S. resident, so he has no gift tax requirement.

    The wire transfer MAY have to be reported using Form 3510, but this is an information form to track the money's source.

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