Q. My mother, who lives in Columbia, is giving me $75,000. Does that create any income or gift tax problems for me? S.T., Key Biscayne, FL
A. No. The IRS doesn’t impose any income or gift tax consequences for receiving a gift regardless of the source (although it could affect the taxable gain or loss if you sell gifted assets). Furthermore, the IRS doesn’t impose any gift tax consequences for gifts made by foreigners. In any event, the donor, not the donee, pays the gift tax.
Tip: If you receive more than $100,000 from a person living abroad, the IRS requires that you report the gift on Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. Find the form at www.irs.gov/pub/irs-pdf/f3520.pdf.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/7105/no-tax-worries-over-foreign-gift "