My client, a US citizen, recieved a gift from her uncle in Hong Kong in 2013 in the amount of $250,000 USD.
Her uncle is a citizen of Hong Kong.
The money was wired from his bank in Hong Kong, to her Bank in the USA.
I see that I will have to file a 3520 form to report the receipt of a gift from a foreign person of more than $100,000.
I am now looking at the 709 gift tax rules.
Page one of 709 instructions says you must file only if you are a "citizen or resident of the United States, so that seems to exclude uncle from having to file a gift tax return....
However, page 3 of 709 instructions has some very odd language, it says "Nonresidents Not Citizens of the United States"....for gifts of tangible property situated in the United States...are subject to gift tax...???
I think they are talking about tangible assets, ie, cars, boats, equipment, etc, that are physically located in the US before the gift..
So I am thinking that since Uncle is a citizen of Hong Kong, he is not required to file the 709..
Any thoughts?
Thanks,
Harvey Lucas
Her uncle is a citizen of Hong Kong.
The money was wired from his bank in Hong Kong, to her Bank in the USA.
I see that I will have to file a 3520 form to report the receipt of a gift from a foreign person of more than $100,000.
I am now looking at the 709 gift tax rules.
Page one of 709 instructions says you must file only if you are a "citizen or resident of the United States, so that seems to exclude uncle from having to file a gift tax return....
However, page 3 of 709 instructions has some very odd language, it says "Nonresidents Not Citizens of the United States"....for gifts of tangible property situated in the United States...are subject to gift tax...???
I think they are talking about tangible assets, ie, cars, boats, equipment, etc, that are physically located in the US before the gift..
So I am thinking that since Uncle is a citizen of Hong Kong, he is not required to file the 709..
Any thoughts?
Thanks,
Harvey Lucas
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