My client's sister who lives in Mexico sold her house and is giving my client $80,000 from the sale. What will the tax implications from that. If he puts $80,000 in the bank there might be questions.
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WHY did the sister give your client that money? Is it a gift? Or was he part owner? Or are there strings attached? Loan repayment? Or something else?
With zero other information, it seems unusual to give an $80,000 "gift" to a sibling, so there could be more involved for why your client received that money.
Was the money in a non-US bank that may trigger FBAR? -
The money will be transferred from a Mexican bank to a us bank. The house was in the sister's name, but he helped her with paymentsComment
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Here's the form you need to fill out for your client: https://www.irs.gov/pub/irs-pdf/f3520.pdfUncle Sam, CPA, EA. ARA, NTPI FellowComment
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