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Do I have to report a 130k gift to the IRS when I do the bank transfer?

Forum|Forum|7 years ago
June 4, 2019
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My mother sold her house overseas, she is a permanent resident in US, and decided to give me an amount of 130k as a gift.

Best answer by DoninGA

Gifts received from an individual are not reported on a federal tax return, regardless of the amount received.

However, if you receive a gift of more than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests then you must file an IRS Form 3520. TurboTax does not support Form 3520. The form is separate from your federal tax return and is mailed to the IRS separately.

IRS Form 3520 - https://www.irs.gov/pub/irs-pdf/f3520.pdf

IRS Form 3520 instructions - https://www.irs.gov/pub/irs-pdf/i3520.pdf

DoninGAAnswer

Employee

Gifts received from an individual are not reported on a federal tax return, regardless of the amount received.

However, if you receive a gift of more than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests then you must file an IRS Form 3520. TurboTax does not support Form 3520. The form is separate from your federal tax return and is mailed to the IRS separately.

IRS Form 3520 - https://www.irs.gov/pub/irs-pdf/f3520.pdf

IRS Form 3520 instructions - https://www.irs.gov/pub/irs-pdf/i3520.pdf

DoninGA

Employee

I should have also mentioned that if the giver of the gift is a US person, citizen or resident, then they are required to report the gift given to the IRS if the amount of the gift given to a single individual is greater than $14,000.
They use IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. TurboTax also does not support IRS Form 709.
Form 709 is separate from a federal tax return and is also mailed separately to the IRS. There will be no taxes owed on the gift given if the person has not given over $5.49 million in total gifts.
IRS Form 709 - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f709.pdf">https://www.irs.gov/pub/irs-pdf/f709.pdf</a>
IRS Form 709 instructions - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i709.pdf">https://www.irs.gov/pub/irs-pdf/i709.pdf</a>