tax implications of gift


N

nmodi1313

My dad who resides overseas would like to give me a gift in
the form of cash. I am aware that gift donors have tax
implications (in the US), but my understanding is that US
recipients of cash gifts do not have any income tax
implications regardless of the amount of the cash gift. Is
that accurate? Appreciate your thinking on this.

nm

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2007) - All rights reserved. >>
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B

Bill

(e-mail address removed) posted:
My dad who resides overseas would like to
give me a gift in the form of cash. I am aware
that gift donors have tax implications (in the
US), but my understanding is that US
recipients of cash gifts do not have any
income tax implications regardless of the
amount of the cash gift. Is that accurate?
Appreciate your thinking on this.
You've got it right: the recipient of a gift faces
absolutely no tax consequences. The giver may have to file
a form, which relates to the estate limitations -- but
that's no problem for the person who receives the gift.

Bill

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
B

Benjamin Yazersky CPA

My dad who resides overseas would like to give me a gift in
the form of cash. I am aware that gift donors have tax
implications (in the US), but my understanding is that US
recipients of cash gifts do not have any income tax
implications regardless of the amount of the cash gift. Is
that accurate? Appreciate your thinking on this.
You, as the recipient of the gift have no income or gift tax
issues. The donor of the gift (your father) could have gift
tax issues that may need to be addressed.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
P

parrisbraeside

nmodi1...@yahoo.com said:
My dad who resides overseas would like to give me a gift in
the form of cash. I am aware that gift donors have tax
implications (in the US), but my understanding is that US
recipients of cash gifts do not have any income tax
implications regardless of the amount of the cash gift. Is
that accurate? Appreciate your thinking on this.
Is your Dad a US Citizen even though he is a foreign resident?

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
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D

Drew Edmundson

My dad who resides overseas would like to give me a gift in
the form of cash. I am aware that gift donors have tax
implications (in the US), but my understanding is that US
recipients of cash gifts do not have any income tax
implications regardless of the amount of the cash gift. Is
that accurate? Appreciate your thinking on this.
You may have a reporting requirement. See Form 3520 on the
IRS web site.

--
Drew Edmundson, CPA
Cary, NC

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
 

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