MJO61

If my brother wired money over from the UK into my bank account here, would I have to declare that on my taxes? I am a US citizen.
Thanks.

Michael

Gifts are not taxable to the receiving party.

TimNiceBut

Yes and no.

There's a limit of $12k or $13k per year per person (can't remember the exact limit, but it's on the IRS website) who gifts you money, above that and the IRS will want to know about it and IIRC will want their pound of flesh, too.

penguinbar

If you give people a lot of money, you might have to pay a federal gift tax. But the IRS also allows you to give up to $13,000 in 2011 to any number of people without facing any gift taxes, and without the recipient owing any income tax on the gifts.

Michael

When the giver is a foreigner, the IRS does not tax the giver and never taxes the receiver unless possibly it is an inheritance and then the receiver may possibly be taxed.

nun

If your brother is a US citizen he must comply with US gift tax laws, ie the $13k limit, and or the UK gift tax rules given his residency. You, as the donor, will not have to pay tax.

There is no tax on gifts from foreign people, but you must file form 3250 if it is over $100k.

MJO61

Thanks everyone Brother is a British Citizen. He was wanting to send some money over to help with my grand children's college.