My parents are citizens of India. I am a US citizen. The Gifts I give to my parents are they tax free?

Question

I mean tax free $$ I can give them each year. Also if it is tax deferred; what is the limit in USA per year.

Answer 1

The money that you gift to your parents is tax free to them. You have a reporting requirement if the gift is greater than $12K to a single person a year. Once you make that report (IRS form 709) there is no tax consequences until your estate is settled (after you have died). At the present there are exclusions for estates with less than $2 Million. Assuming that there were no changes to the estate laws and you had less than $2 million upon your death nothing much would happen. The state you live in could have a gift tax but I would imagine that those are frequently ignored.

Answer 2

There is an annual exclusion and a lifetime exclusion. The tax also applies to non--resident aliens from someone living here

I believe that the lifetime exclusion is over $1,000,000.. However it has been going up every year , so I may way too low. Write a letter to IRS for free information. You may prefer to contact a attorney who does estates.

Answer 3

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