Gift Tax

[paola12]

Hello,

I want to send a sum of money to a person living in another country. Will I have to pay US gift tax?

I can't find any information on giving a gift to a foreign person. All I see is about receiving a gift from a foreign person.

Thanks.

[inadmissible]

Gifts are reported (and applicable tax calculated) on IRS Form 709.

Gifts are reportable and reduce your lifetime transfer credit (often called the Unified Credit because it includes transfers upon death) when the gift (cash or non-cash) is valued at more than $14,000 (2015) per transferee (gift recipient).

There are special rules for gifts to spouses that depend on whether they are a resident or nonresident alien for tax purposes.

The Unified Credit in 2015 is $5.43 million and is indexed to inflation.


Questions?