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    Shiva9782's Avatar
    Shiva9782 Posts: 2, Reputation: 1
    New Member
     
    #1

    Oct 1, 2012, 06:51 AM
    H1B - Gift Tax Question
    Hi,

    I sent my parents (father's account) around 50K in 2011. I am trying to file the gift tax return and I have filed for an extension. I am currently on H1B. I was thinking that I don't owe any tax as this is well below the lifetime exemption. But, I am little confused now as I am not sure if I qualify as a resident for gitt tax purposes. For income tax purposes I am a resident alien. Does the same apply to gift tax? The instructions on 709 form are confusing. Can someone please explain what I should fill on line 7 for citizenship? This is all after tax money I have sent. I don't want to be taxed again. Please help.

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

    Oct 1, 2012, 07:59 AM
    Your residency status for income tax purposes also applies to the Gift Tax. Put "U.S. resident" on Line #7 of the Form 706.

    OR you can hire me to prepare the return; email me at the email address in my profile if you are interested (if you cannot see the address below).
    Shiva9782's Avatar
    Shiva9782 Posts: 2, Reputation: 1
    New Member
     
    #3

    Oct 1, 2012, 09:46 AM
    Dear AtlantaTaxExpert,

    Thanks. I have sent you an email.

    Quote Originally Posted by AtlantaTaxExpert View Post
    Your residency status for income tax purposes also applies to the Gift Tax. Put "U.S. resident" on Line #7 of the Form 706.

    OR you can hire me to prepare the return; email me at the email address in my profile if you are interested (if you cannot see the address below).
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Oct 1, 2012, 11:53 AM
    I have received and answered the email.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
     
    #5

    Oct 1, 2012, 06:57 PM
    "Your residency status for income tax purposes also applies to the Gift Tax." Untrue.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #6

    Oct 2, 2012, 04:48 AM
    IntlTax:

    So it is your position that the OP does NOT have to file a gift tax return?

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