Is monetary gift from abroad subject to IRS reports ?
Chicago, IL |
In 2013 I got a transfer of $80,000 from my parents who live in China . I have a green card . My parents are Chinese citizens. So , should I report this transfer to IRS ? (this was a one time transfer , no other transfers)
Its my understanding that there is a requirement to report transfers of $10,000.00 or more have to be reported to the IRS. (Not as income on your income tax return, unless I constitutes income. A gift is not taxable income)
Attorney Wagner is correct that a gift should not be reported as income. IRS form 8300 is for cash transactions over $10,000; however, a wire transfer is usually not considered cash and therefore is exempt from this recording requirement.
Because this is a gift it does not need to be reported on your tax return.
This answer is based on general legal principles only and is not intended to provide specific legal advice. This answer is for informational purposes only and does not constitute the formation of a lawyer-client relationship. Any reader of this answer should not make decisions based upon in without first directly consulting with an attorney