Foreign Gift Tax Exclusion

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  • taxdude
    Junior Member
    • Dec 2013
    • 2
    #1

    Foreign Gift Tax Exclusion

    I don't know if anyone has any insight into foreign gifts, but I will ask the question anyway.

    I have a client who received a gift from her brother, who is a German citizen. My client wants to know if she and her husband can jointly exclude (up to $26K) of this gift from Germany. The information I have is only for domestic gift tax exclusion. Is there a gift tax exclusion in Germany?
    Tags: exclusion, foreign, gift
    • MAMalody
      Senior Member
      • Oct 2006
      • 374
      #2
      I have always thought, unless otherwise specified, US tax law applied to US citizens worldwide. I am not aware of any specific provision for gifts from Germany, therefore, I would say the US gift exclusion would apply.

        Comment

        • TaxmannEA
          Member
          • Apr 2007
          • 76
          #3
          Gifts received are not included in income of the person receiving the gift. I would think that the gift tax exclusion would be an issue only if the donor was in the US, not the recipient.

            Comment

            • BOB W
              Senior Member
              • Jun 2005
              • 4061
              #4
              Receiving gifts is not the issue. Only giving gifts involves exclusion issues.

              ADDED: TaxmannEA, Looks like we both posted at the same time....................
              Last edited by BOB W; 12-13-2013, 02:27 PM.
              This post is for discussion purposes only and should be verified with other sources before actual use.

              Many times I post additional info on the post, Click on "message board" for updated content.

                Comment

                • TaxGuyBill
                  Senior Member
                  • Oct 2013
                  • 2360
                  #5
                  Originally posted by taxdude
                  I don't know if anyone has any insight into foreign gifts, but I will ask the question anyway.

                  I have a client who received a gift from her brother, who is a German citizen. My client wants to know if she and her husband can jointly exclude (up to $26K) of this gift from Germany. The information I have is only for domestic gift tax exclusion. Is there a gift tax exclusion in Germany?
                  Your clients are the ones RECEIVING the gift, right? NONE of the gift is subject to tax. The $14,000 exclusion is for the GIVER.

                  In the event the gift is over $100,000, then Form 3520 needs to be filed.

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

                    Comment

                    • taxdude
                      Junior Member
                      • Dec 2013
                      • 2
                      #6
                      RE: Foreign Gift Tax Exclusion

                      Thank-you all for your excellent advice!

                        Comment

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