A friend wants to send me a gift, but before he sends it, he just wants to make sure I wont have to pay anything when it arrives. thanks
A gift tax is due and payable by the donor and if your "friend" is not a US citizen or resident, then they do not have to file a gift tax return and they are not liable for gift taxes. The recipient does not pay the tax (except in certain situations, of which this is not one if all is as you stated).
Of course, it does raise issues as to why the transaction consists of a gift of diamonds and not funds transferred through the normal course but that is another matter entirely. But if it truly is simply a gift of diamonds, and nothing more, then no tax is payable by you.
Eric P. Rothenberg, P.C.
ORSI ARONE ROTHENBERG
160 Gould Street-Suite 320
Needham, MA 02494-2300
Follow my Tweets at http://twitter.com/Tax_Esq
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS in Circular 230, we inform you that, unless we expressly state otherwise in this communication (including any attachments), any tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or other matter addressed herein.
1 lawyer agrees
Gifts whose value is higher that USD100 are subject to the payment of customs duties. I believe in such situation CBP will assess a duty rate on the fair market value of the gift.
Diamonds are classified within chapter 71 of the Harmonized Tariff Schedule; check out the tariff first, then confirm with CBP at the following: https://help.cbp.gov/app/home/search/1
Attorney Advertising. The information given above is intended to provide general information only and not legal advice and does not create an attorney-client relationship.
2 lawyers agree