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What taxes do children owe if they are US citizens but parents making cash gift to th

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  • What taxes do children owe if they are US citizens but parents making cash gift to th

    If a child is an adult US citizen, and parents in another country, who
    are not US citizens, give that child a cash gift, does that child have
    to pay US taxes, and what is the rate? I am assuming the gift is more
    than $11,000, let's say it is $100,000.



  • #2
    What taxes do children owe if they are US citizens but parents making cash gift to th


    "John Johnson" <[email protected]> wrote
    If a child is an adult US citizen, and parents in another country, who are not US citizens, give that child a cash gift, does that child have to pay US taxes,
    Not because of the gift. Gifts are not income, and therefore not taxable.

    and what is the rate? I am assuming the gift is more than $11,000, let's say it is $100,000.


    Doesn't matter.



    --
    Paul A. Thomas, CPA
    Athens, Georgia


    Comment


    • #3
      What taxes do children owe if they are US citizens but parents making cash gift to th


      "John Johnson" <[email protected]> wrote in message
      news:[email protected]
      If a child is an adult US citizen,
      Then the person is not a "child". By definition "child" and "adult" are mutually exclusive.

      and parents in another country, who are not US citizens, give that child a cash gift, does that child have to pay US taxes, and what is the rate? I am assuming the gift is more than $11,000, let's say it is $100,000.
      Would the parents also be subject to any withholding tax or capital transfer taxes in their own
      country or in the country of their present residence?

      The recipient also is almost certainly a citizen of the country/ies of which the parents are
      citizens. You should also enquire about the son/daughter's liability to tax there too. US tax is
      not the only tax to worry about! :-o)


      Comment


      • #4
        What taxes do children owe if they are US citizens but parents making cash gift to th


        "Paul" <[email protected]> wrote in message news:[email protected]
        "John Johnson" <[email protected]> wrote
        If a child is an adult US citizen, and parents in another country, who are not US citizens, give that child a cash gift, does that child have to pay US taxes,
        Not because of the gift. Gifts are not income, and therefore not taxable.
        They are taxable under UK law under certain circumstances. If the recipient, though a US citizen,
        is subject to UK tax laws (eg. British parent?, British residency? British domicile?) then the
        recipient of the gift is subject to UK tax laws as well as US tax laws.

        The same would apply in principle with respect to any non-US citizenship, residence or domicile of
        the recipient - I've cited UK simply as an example.

        Remember the son/daughter receiving the gift almost certainly has inherited citizenship from his/her
        non-US parents, and thus comes *also* under the tax laws of at least one if not two other countries,
        besides the USA. If the recipient is living outside the USA, then there could be yet another
        country's tax laws involved. There are usually double-taxation treaties which prevent persons
        subject to multiple tax regimes from paying the tax multiple times :-)))






        Comment

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