international transfer

tah · Post by **tah** » Mon Jun 15, 2015 10:09 pm

Are there tax implications when a large amount of money is gifted to you in Canada, then you transfer the money from your Canadian to US bank account while you are a US resident alien? (there is no gift tax in Canada beyond possible capital gains, while these is a gift tax in the US)

nelsona · Post by **nelsona** » Tue Jun 16, 2015 8:12 am

In general, where the money is, or where you put the money, doesn't matter in terms of US taxation (or Cdn for that matter), so the whole notion of transferring money from one of your own accounts to another means nothing.

Gift tax (which is only a US tax issue) only applies to the person GIVING the money, not recieving it. If that person is not a US taxpayer, then there cannot be any gift tax. There are no Cdn tax implications either.

If the gift is over US$100K, then the US RECEIVER (again, where the money is kept doesn't matter) must REPORT the gift on form 3520, but there would be no tax.

Once the money has been given, then ay INCOME generated by those funds is taxable.