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We are non-resident alien parents. What taxes, if any, we or our children will have to pay, in case we gift them an amount, say $50,000/-?
Our children are American Citizens. We wish to gift each of them (2) an amount of US$100,000/-. What taxes do they have to pay to US Govt.?
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Tax Professional Answers
Gifts are not taxable income, so there would be no tax liability involved. However, if the gift was not cash and the children sold the property received, they would owe income tax on the excess of the proceeds of the sale over your cost basis in the property. Also, if the gift was $100,000 or more a Form 3520 must be filed with the IRS. This is an information return only, there is no tax involved.Leave a Comment 157 weeks ago