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Reporting a gift from a Non-US citizen and gift taxes

Level 3

Hi everyone,

My client is a US citizen and a resident of California. Her parents are not. The parents live in France and are French citizens. They want to give their daughter a monetary gift by transferring few hundred thousand euros from their French bank account into daughter's account also located in France with a French institution. Because the donors are not US citizens, and it is an intangible gift that is not in the US and probably will never enter a US institution, I want to double check that there will be no tax consequences for either the parents or the daughter, in the US, other than reporting as I've identified below. 

- A gift tax return, Form 709, is not appropriate in this situation as the Donors are not US citizens and the property in question is not in the US.

- Instead, the daughter will file form 3520 to report the foreign gift, and there will be no taxes owing.

- The Daughter will also file FinCEN Form 114 and IRS Form 8938. 

Thank you,

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Level 15

You are correct.


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Level 15

You are correct.