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Tax on 200K gift for overseas

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  • Tax on 200K gift for overseas

    I live in Austrlia. I want to transfer 180,000-230,000 US$ into my American friend's account, as a gift. This will go towards buying my own house.
    The account is in the USA and she is an American citizen.
    I have already paid tax on his earnings in Australia.
    Would she be taxed on that in the US? and if so, how much?

    Thank you.

  • #2
    Re: Tax on 200K gift for overseas

    I wish to inform you that a U.S. person who has received foreign gifts of money or other property may need to report these gifts on Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. Further, Form 3520 is an information return and it is not a tax return. The foreign gifts are not subject to income tax. However, for failure to file Form 3520 when it is required there are penalties. Form 3520 will be filed with IRS by your friend as the gift money is more than $100,000.



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