Hello, I am sorry for the unsolicited email. I was searching google for tax info and found your address. If possible, please answer my questions about tax on money from India. I am from India and work in the US. I am planning to buy a house and my parents in India want to send me money to go towards it. My questions are- 1. What is the maximum amount that they can send?
2. Is that money taxable here in the US? If yes, will it have only state tax or also federal?
Thanks ----------------------------------
david ingam replies:
Because your parents are not US persons, they can give you any amount of money they want. However, the money should be in India when they give it to you. They should NOT have a bank account with $200,000 in it in their name in the United States.
If they did or were in the USA when they gave you more than $12,000 each, they would owe gift tax on it.
They should send you the money by electronic transfer - their bank in India to your bank in the USA - OR, if you are in India, they could give it to you there and you could transfer it yourself. -
Your bank will then notify FINCEN that the money has arrived but becaue it was snet electonically, there will not likely be any questions.
If there are questions from the IRS at this point it is easy to prove or show that it was a legal gift,.
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CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/20070819000733156