Q.1222 USA Tax on money

received from India as gift . . .

Question: I am citizen of USA My uncle resident (citizen of India) of India send money in my USA bank account as Gift amouting $50000 in three inslalments in year ending 2018 . Is this amount taxable to me in USA ? Appriciate early reply Answer: Gifts received from an Indian citizen in India by a US tax payer residing in USA are not taxable in the United States. However there are reporting requirements depending on the amount of the gift. Any gift valued at more than US$ 100,000 needs to be reported to the IRS on Form 3520 when filling annual return. Since you received three installments in 2018 for a total value of US$ 150,000 Form 3520 will be required. Check with your accountant. Even in cases where the amount is below the specified threshold and Form 3520 is not mandatory, it may be prudent to file this form to create a record of the money received from abroad just in case of questions arise in later years of where the money came from. To view a copy of Form 3520 for 2018 CLICK HERE