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What would be IRS Tax implication on receiving $25,000 as gift from non-US citizen parents from foreign country?
Anonymous3 views4 answers
I am a permanent resident of USA (green card holder). My parents are from India (Indian citizen) would like to send me $ 25,000 as gift. What would be the tax implications with IRS? Do I need to report to IRS? What is the limit on receiving gift from parents foreign country?
For you, no implications. For them - use of their personal life-time exemption. There may also be a reporting requirement. See here: http://www.irs.gov/Businesses/Gifts-from-Foreign-Person. You probably need to talk to a tax lawyer. Please use the search feature on to find a lawyer near you.
I hope this answer is helpful.
No implication for you and no implication for them if they do not live in the US as long as the gift does not come - even in part - from a corporation or partnership in excess of $15,102. If this is the case, you need to file Form 3520. Best.
A related question may be whether your parents have listed your name on any financial accounts in India, either with signature authority or as a co-owner of the account. Since the IRS announced the first of three offshore voluntary disclosures programs in 2009, hundreds of US taxpayers with parents in India were surprised to discover they were the owners of such accounts which may require disclosure through the IRS' current Offshore Voluntary Disclosure Program.
