Gift Money

shyboy · Post by **shyboy** » Mon Jul 07, 2008 2:16 pm

is the gift money taxable?

if yes then what is the limit that can be considered as gift money..

Money coming from Canada

nelsona · Post by **nelsona** » Mon Jul 07, 2008 2:22 pm

Gift tax is assessed on the person GIVING the money. If the person is not a US taxpayer, then there is no tax on such a gift from a canadian.

However, if the total of such gifts is more than $100,000, then Form 3520 must be filed with IRS to report these (not pay tax).

shyboy · Post by **shyboy** » Tue Jul 08, 2008 7:55 am

thanks for your reply Nelson.

so, if the gift money is below $100,000 there is even no declaration required that you got this money from which source?

Should I also need to get a letter from the person says that he sent me this money as gift/loan return?

thanks,

nelsona · Post by **nelsona** » Tue Jul 08, 2008 8:28 am

Don't people who send gifts, also include a card?

And a loan repayment is not a gift. I don't send the bank a gift every month.
So don't use the terms interchangeably