Gift Tax for Nonresident Aliens in the U.S.
Gift tax laws are complicated for all taxpayers — nonresident aliens are no exceptions. In fact, nonresident aliens face several circumstances that provide both challenges and opportunities for them. For example, multiple exemptions to the gift tax for a non-US citizen exist for those who are familiar with the law.
GIFT TAX RULES
The Internal Revenue (IRS) considers any direct or indirect transfer of wealth from one individual to another that has not received some form of equal compensation to be a gift.
Under IRS rules, most gifts are taxable transactions, but there are exceptions, such as:
Gifts that fall below the annual gift tax exclusion
Spousal gifts
Donations to a political organization
Medical or tuition expenses paid for someone
Donations to qualifying charities
Unless the gift is for a charitable organization, you can’t deduct it from your income tax. The person giving the gift is usually responsible for paying the gift tax. But under some circumstances, the receiver may be permitted to pay it.
Your Sarasota tax professional at Miller & Company can help you make the necessary adjustments if you wish to pay the tax as the receiver.
Read more: https://www.cpafirmnyc.com/gif....t-tax-non-us-citizen
Miller & Company CPAs: Tax Accountants
Sarasota, Florida
2831 Ringling Boulevard, #204b
Sarasota, FL 34237
(941) 366-5646
https://www.cpafirmnyc.com/acc....ounting-firm-sarasot
