Author Topic: Gift from foreign person - only file information return on Form 3520, right?  (Read 1424 times)

a1smith

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My wife's mom (Canadian citizen still living in Canada) is selling her house and is going to gift us a portion of the proceeds.  My wife is US citizen now.  From what I have read it looks like all we will need to do is declare the gift, assuming it is above the minimum amount, on an "information return" using Form 3520.  Here is the IRS page discussing this:

http://www.irs.gov/Businesses/Gifts-from-Foreign-Person

Is anyone aware of any other filing requirements or tax implications?

MDM

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No direct experience in this area, but your take on the situation seems reasonable.  If a significant gift comes from someone inside the US it is the giver, not the receiver, who pays the tax.  Thus the "foreign gifts are not subject to income tax" quoted in the link makes sense.

rogerinho2309

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No direct experience in this area, but your take on the situation seems reasonable.  If a significant gift comes from someone inside the US it is the giver, not the receiver, who pays the tax.  Thus the "foreign gifts are not subject to income tax" quoted in the link makes sense.

My wife's mom (Canadian citizen still living in Canada) is selling her house and is going to gift us a portion of the proceeds.  My wife is US citizen now.  From what I have read it looks like all we will need to do is declare the gift, assuming it is above the minimum amount, on an "information return" using Form 3520.  Here is the IRS page discussing this:

http://www.irs.gov/Businesses/Gifts-from-Foreign-Person

Is anyone aware of any other filing requirements or tax implications?

rogerinho2309

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No direct experience in this area, but your take on the situation seems reasonable.  If a significant gift comes from someone inside the US it is the giver, not the receiver, who pays the tax.  Thus the "foreign gifts are not subject to income tax" quoted in the link makes sense.

My wife's mom (Canadian citizen still living in Canada) is selling her house and is going to gift us a portion of the proceeds.  My wife is US citizen now.  From what I have read it looks like all we will need to do is declare the gift, assuming it is above the minimum amount, on an "information return" using Form 3520.  Here is the IRS page discussing this:

http://www.irs.gov/Businesses/Gifts-from-Foreign-Person

Is anyone aware of any other filing requirements or tax implications?