My friend is a US Citizen (naturalized), they have dual citizenship with a SA country, her parents are not US citizens or residents. My friend currently has a property for which they pay mortgage (30 year US bank loan). Her parents are looking to gift her and pay for the remainder of the whole loan/debt either by several payments or lump sum.
From her understanding a parent can gift up to $14K per year without incurring in a gift tax, but also a parent can gift no more than $1 or 2 million (not sure the exact number) in their lifetime or they will get a gift tax.
If my friend's house is $200K and her parents wants to pay for the $200K as a gift either in several gifts payment or lump sum, will the parents have to pay a tax since the parents are not from the US or US citizens/residents?
Are there any restrictions?
From her understanding a parent can gift up to $14K per year without incurring in a gift tax, but also a parent can gift no more than $1 or 2 million (not sure the exact number) in their lifetime or they will get a gift tax.
If my friend's house is $200K and her parents wants to pay for the $200K as a gift either in several gifts payment or lump sum, will the parents have to pay a tax since the parents are not from the US or US citizens/residents?
Are there any restrictions?