[toidness]

My mother lives overseas, but has a US green card, has decided to help with my home renovations and will be sending money in installments to help out. Amount will be around $50K per year for around 5 years.

1. Since she has a green card does that mean she has to pay US gift taxes? If Yes, what is the average percentage? What are the limits she can transfer w/ or w/o the gift taxes? Is it the around $13K per person or the $100K per year.

2. For convenience reasons she might just have the money deposited into a local account from the country she is from. I will have an account under my name in that country so it will be in my name. I will then periodically wire the money to my US account. What are the tax implications for doing that form of wire transfer from my account overseas to my US account.

3. Any better recommendation on how to handle such a transfer. Taxes have already been paid on this money in the country my mother works in.

[MukatA]

She can gift $13000 each year separately to you, your spouse and each of your children.
Even if she gifts more than $13000 to any one person, she does not pay any gift tax as there is life time exemption of $ 1million. Only she files gift tax return. Your U.S. Tax Return: The U.S. Gift Tax

[toidness]

She has gifted in the past and has never filed the gift tax return as she never files taxes in the US. What is the penalty if she hasn't?

I'm still curious to find out about question #2 if anyone has insight. I did read a thread on this site about it but it didn't really talk about how that money is taxed or untaxed when it is wire xfer.

https://www.askmehelpdesk.com/taxes/...ft-218410.html

[ebaines]

Your mother does not need to file any tax return in the US at all - the gift tax form that Mukata referenced is for US citizens and residents only. So - no penalty.

As for (2) - there is no tax imposed by the US for wire transfers from other countries.

[MukatA]

Since she has green card, she is resident. So she must meet IRS requirements.
1. She must file US tax return if her worldwide income exceeds the filing requirement.
2. Another filing requirement is Form TD F 90-22.1. You must also be aware of forms TD F 90-22.1 (also known as FBAR) and 8938 Specified foreign financial assets (SFFA). Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income
3. When you get wire transfer from foreign country, no tax is involved.

[toidness]

Dear ebaines,

Thank you for the info. My mom does have a green card but lives overseas.