if someone was to give me a gift of 100,000 dollars and wire it to my bank account from England how much of that can I expect the government take out ? If it is a "gift" is the government entitiled to get its grubby hands on it?
2007-08-06 14:41:50 · 6 answers · asked by tony p 1 in Business & Finance ➔ Taxes ➔ United States
the person has already paid the tax to make it an even 100,000
2007-08-06 15:40:47 · update #1
i put the word gift in '' to highlight the intent. so from what i gather the fact that i am not giving anything i return makes it a true gift?
2007-08-06 15:43:15 · update #2
thank you all
2007-08-06 15:44:43 · update #3
There is no tax for the person who receives a gift. You can get $1 up to and beyond $1 trillion, and the tax effect to you would be the same, $0. However, there is a form that you have to fill out when getting a gift from a foreign person. It is form 3520, and needs to be filed if you received more than $100,000 in a year. You are right at the amount needed to file, so I would just to cover yourself. I've attached the instructions to form 3520 and the form itself.
2007-08-07 08:06:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You are never taxed on a gift that you receive. As long as it is a true gift. If the other party receives anything in return, it might be taxable to you, but a gift is a gift, and Uncle Sam won't take a dime.
The giver of the gift will most likely have to pay taxes on the gift. I don't know what the laws are in England, but in the US there are gift taxes that must be paid if you give a gift over $12,000 to one person in one year ($24,000 if you and your spouse want to each give a gift to the same person).
I hope that helps.
2007-08-06 22:11:00 · answer #2 · answered by Michael K 5 · 1⤊ 0⤋
$0. Gifts are not taxable to the recipient. However there is an exception for gifts coming form the UK due to the tax treaty between the US and UK. If the UK Gift Tax is paid, you will not pay any US tax. However if the UK Gift Tax is not paid, it may be taxable to you.
It better be a bona-fide gift as well. If the "giver" gets anything in return from you, it's ordinary income to you. The fact that you put the term "gift" in quotes makes me suspicious of your motives.
2007-08-06 22:20:10 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 0⤋
There will be no tax to you. The person in England making the transfer will be taxed (I do not know current applicable rates).
You can also refer to the IRS Publication 950 on gift and estate taxes/
2007-08-06 21:59:27 · answer #4 · answered by OC 7 · 0⤊ 0⤋
100,000!!! if you are getting that kind of money I hope it is an inheritance and not some scam.
2007-08-06 21:45:16 · answer #5 · answered by Domino 4 · 0⤊ 0⤋
Gifts are income so the gov is entitled.
2007-08-06 22:19:23 · answer #6 · answered by towanda 7 · 0⤊ 4⤋