Taxes on gifts held in father s homeland?
Taxes on gifts held in father's homeland? Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
I am a U.S. citizen. My father is not a citizen, and doesn’t reside in the U.S. He wants to pass some of his estate to me as an inheritance and/or gift. Last year, he used his own money and bought a condo for me in the town where he lives. I am listed as the owner of the condo, and he has the power of attorney on the deed, in accordance with the local laws where he lives. Also last year, I opened a non-U.S. brokerage account. He has been transferring stocks to this account in my name. This year, I opened a non-U.S. bank account and he puts a little money in his local currency every year into my account. The money mostly comes from the sale of his other assets and dividend checks from stocks. I have not transferred any of the monies from my non-U.S. accounts to my American accounts. As for the condo, my father is living in it and pays all the property taxes and utilities. Obviously, I don’t receive any rental income. At this point, I am not clear what I need to declare to the IRS. Do I owe any U.S. taxes on assets in my father’s homeland that he has put in my name?
— Nathan
It seems you have some regarding taxation. Because foreign assets are a hot topic with the Internal Revenue Service lately, I recommend you sit down with a good certified public accountant specializing in the area of U.S. taxes on foreign transactions. The brokerage and bank accounts are considered foreign accounts. If their combined value is $10,000 or more at any time during the year you have to report their details to the Treasury Department (of which the IRS is part.) Use to report the accounts on or before June 30 of each year. Although you can find the form on the IRS website, don’t include it with your tax return. Rather, mail it to the address in Detroit that appears on the form. If the in your name — other than the deposits your dad makes — the income would need to be included in your tax return. Tax rules similar to those that pertain to qualified dividends and capital gains apply to the activity of the accounts. Because these accounts are not reported directly to the IRS, you’ll need to get an annual recap on a calendar year basis for purposes of filing your taxes. IRS form 3520 is used to report certain gifts from foreign persons in excess of a threshold that varies, depending on whether the gift is from an individual or an entity. It also covers situations with trusts. You may have various issues that are reportable. But it would be best to get the informed opinion of a trusted tax adviser who is familiar with your situation regarding foreign assets, and would therefore be in the best position to advise you of strategies.
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: July 07, 2011 George Saenz Bankrate logoThe Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logoThe Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logoEditorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logoHow we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.I am a U.S. citizen. My father is not a citizen, and doesn’t reside in the U.S. He wants to pass some of his estate to me as an inheritance and/or gift. Last year, he used his own money and bought a condo for me in the town where he lives. I am listed as the owner of the condo, and he has the power of attorney on the deed, in accordance with the local laws where he lives. Also last year, I opened a non-U.S. brokerage account. He has been transferring stocks to this account in my name. This year, I opened a non-U.S. bank account and he puts a little money in his local currency every year into my account. The money mostly comes from the sale of his other assets and dividend checks from stocks. I have not transferred any of the monies from my non-U.S. accounts to my American accounts. As for the condo, my father is living in it and pays all the property taxes and utilities. Obviously, I don’t receive any rental income. At this point, I am not clear what I need to declare to the IRS. Do I owe any U.S. taxes on assets in my father’s homeland that he has put in my name?
— Nathan
It seems you have some regarding taxation. Because foreign assets are a hot topic with the Internal Revenue Service lately, I recommend you sit down with a good certified public accountant specializing in the area of U.S. taxes on foreign transactions. The brokerage and bank accounts are considered foreign accounts. If their combined value is $10,000 or more at any time during the year you have to report their details to the Treasury Department (of which the IRS is part.) Use to report the accounts on or before June 30 of each year. Although you can find the form on the IRS website, don’t include it with your tax return. Rather, mail it to the address in Detroit that appears on the form. If the in your name — other than the deposits your dad makes — the income would need to be included in your tax return. Tax rules similar to those that pertain to qualified dividends and capital gains apply to the activity of the accounts. Because these accounts are not reported directly to the IRS, you’ll need to get an annual recap on a calendar year basis for purposes of filing your taxes. IRS form 3520 is used to report certain gifts from foreign persons in excess of a threshold that varies, depending on whether the gift is from an individual or an entity. It also covers situations with trusts. You may have various issues that are reportable. But it would be best to get the informed opinion of a trusted tax adviser who is familiar with your situation regarding foreign assets, and would therefore be in the best position to advise you of strategies.