Gift Tax for money sent overseas

[jeffzzang623]

What is the name of your state? GA

I have recently come into a large sum of money. My wife is a green card holder and I would like to give her parents, who live overseas, some money. How are taxes computed for money sent overseas as a gift? Also, is it true that I can't freely gift money to my wife because she is not a US citizen? Thank you.

[LdiJ]

Originally Posted by jeffzzang623

What is the name of your state? GA

I have recently come into a large sum of money. My wife is a green card holder and I would like to give her parents, who live overseas, some money. How are taxes computed for money sent overseas as a gift? Also, is it true that I can't freely gift money to my wife because she is not a US citizen? Thank you.

Its untrue that you may not freely gift money to your wife. You can avoid gift taxes by you and your wife gifting 12,000 each, to each of her parents, for a total of 48,000. That is best accomplished by 4 separate checks, (or wire transfers) one from you to her mother and one to her father, and one from her to her mother and one to her father.

[LdiJ]

Originally Posted by gkisystems

There is a tax on amounts over $12k given by one US citizen to another. The person giving the money pays the tax.

There is a tax on money recieved from a foreign source. The person who gets the money (who is also the person in the USA) pays the tax.

A US citizen can gift money to foreignors outside of the country, tax free.

The bolded part is completely incorrect as far as gifted money is concerned. The person in the US receiving a gift from a foreign source is absolutely NOT taxed on that money. For Homeland Security purposes they are required to report it if it exceeds 105k, but they are NOT taxed on it.

Money that is gifted to a foreign recipient falls under the same 12k exclusion as any other gift.

[Zigner]

And, just to be clear - the $12,000 is the threshold for REPORTING the gift. It may very well fall under the lifetime exclusion on gifts...that depends on the situation of the giftor.

[LdiJ]

Originally Posted by Zigner

And, just to be clear - the $12,000 is the threshold for REPORTING the gift. It may very well fall under the lifetime exclusion on gifts...that depends on the situation of the giftor.

Thanks for adding that. I should have done so.

[jeffzzang623]

Originally Posted by LdiJ

Its untrue that you may not freely gift money to your wife. You can avoid gift taxes by you and your wife gifting 12,000 each, to each of her parents, for a total of 48,000. That is best accomplished by 4 separate checks, (or wire transfers) one from you to her mother and one to her father, and one from her to her mother and one to her father.

I can freely gift to my wife even though she is NOT a US Citizen?

[LdiJ]

Originally Posted by jeffzzang623

I can freely gift to my wife even though she is NOT a US Citizen?

Yes, absolutely you can.