What is the name of your state (only U.S. law)? Pennsylvania
Hi there. So I've got a friend of mine who resides in Japan sending me money so that I can afford my apartment. I know that recipients of gifts aren't subject to tax (at least that's what I've read) and the only tax issues would be on his end if he sent more than 14,000 in a year. As well as the fact that he only ever needs to actually pay any tax is if he exceeds the 5.43 million threshold. Though I believe I need to fill out a form 3520 because i'm recieving a gift from a foreign individual. Would I be subject to tax then? What all does my friend need to do? Is all this info i've written correct? Basically, can any confirm my suspicions about gift tax and give me a little insight into what all will need to done concerning taxes? Thank you for your help.
Hi there. So I've got a friend of mine who resides in Japan sending me money so that I can afford my apartment. I know that recipients of gifts aren't subject to tax (at least that's what I've read) and the only tax issues would be on his end if he sent more than 14,000 in a year. As well as the fact that he only ever needs to actually pay any tax is if he exceeds the 5.43 million threshold. Though I believe I need to fill out a form 3520 because i'm recieving a gift from a foreign individual. Would I be subject to tax then? What all does my friend need to do? Is all this info i've written correct? Basically, can any confirm my suspicions about gift tax and give me a little insight into what all will need to done concerning taxes? Thank you for your help.