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Visitor receiving gifts

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sathvick

New member
What is the name of your state? Alabama

I am a citizen of Singapore and now I am in USA on a visitors’ visa since August 2021 and will go back to Singapore in January 2022. According to our traditions, my friends and relatives offered me $9,300 as cash gifts but I put that on hold. Is it legal, as per USA rules, for me to accept that cash and do whatever I wish with it as if it is my own money (either to spend it in USA, gift it to someone in USA, or take it back to Singapore)?
 


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zddoodah

Active Member
I have to ask: First, why would you think there might be any law against anyone giving you cash gifts or you using such money in any way you choose?

Second, $9,300 is a very random amount. Is there anything to it?
 
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Taxing Matters

Overtaxed Member
zddoodah said:
Second, $9,300 is a very random amount. Is there anything to it?
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It may be nothing more than that is the amount they feel comfortable giving or are able to afford. Bear in mind that the $9,300 sounds like the total given by several people, so the amounts by any one person may be typical rounded figures, e.g. $500, $1,000, or whatever.
 
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Taxing Matters

Overtaxed Member
sathvick said:
What is the name of your state? Alabama

I am a citizen of Singapore and now I am in USA on a visitors’ visa since August 2021 and will go back to Singapore in January 2022. According to our traditions, my friends and relatives offered me $9,300 as cash gifts but I put that on hold. Is it legal, as per USA rules, for me to accept that cash and do whatever I wish with it as if it is my own money (either to spend it in USA, gift it to someone in USA, or take it back to Singapore)?
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The gifts are legal for you to receive as far as US law is concerned, and there are no taxes to pay on that. You are free to use the money as you like just as any American may do. Obviously, you cannot do something illegal like buying drugs with the money, but there are no unusual restrictions you would have as a foreign person just because of the cash gifts.
 
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sathvick

New member
I am pleasantly surprised with the quality and quantity of the responses, very many thanks!

Lastly, I brought $9,500 cash with me to USA and spent (or will spend) 1-2 thousands here. Is it legal for me to give the remaining $7,500, plus the gift $9,300 I received, together (totaling around $16,000), to someone in USA as a gift? One of my childhood friends, who is USA citizen, is in a financially bad situation and I would like to help him by giving him a gift. Also, is it legal for that friend to receive that cash and use it in the way he wants (of course, legally) including putting it in a USA bank? I read several things such as (i) there is a limit of $15,000 for giving or receiving gifts, (ii) form 3520, (iii) FATCA regulations, etc, and confused. Please help me.
 
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Taxing Matters

Overtaxed Member
sathvick said:
I am pleasantly surprised with the quality and quantity of the responses, very many thanks!

Lastly, I brought $9,500 cash with me to USA and spent (or will spend) 1-2 thousands here. Is it legal for me to give the remaining $7,500, plus the gift $9,300 I received, together (totaling around $16,000), to someone in USA as a gift? One of my childhood friends, who is USA citizen, is in a financially bad situation and I would like to help him by giving him a gift. Also, is it legal for that friend to receive that cash and use it in the way he wants (of course, legally) including putting it in a USA bank?
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Yes, it is legal for you to make the gift and for him to receive it and use the money as he sees fit.

sathvick said:
I read several things such as (i) there is a limit of $15,000 for giving or receiving gifts
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It's not a limit on what a person may give or receive. It's a tax rule that says that if you make gifts during the year to any one person that exceed $15,000 you will need to file a U.S. federal gift tax return and may have to pay federal gift. The gift tax is paid by the person who gives the gift, not the person who receives it. The gift tax rules for persons who are neither citizens nor residents of the US get a bit complex, but suffice to say that if you give your friend more than $15,000 in cash this year while you are in the US you'd be required to file a federal gift tax return. Federal gift tax applies to nonresident aliens at much lower levels than for US persons, so you'd not have to make a lot of gifts over that $15,000 to end up having to pay this tax, and it's expensive. Therefore I suggest you not give him more than $15,000 cash while you are here in the US. If you want to wire him some extra money after you get home to Singapore, that wire transfer would not be subject to the gift tax since at that point the gift is being made outside the US.

sathvick said:
(ii) form 3520,
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That's not a form you'd need to worry about. Your friend would have to file the Form 3520 if he receives gifts from foreign persons during the year that exceed $100,000. So your gift of about $16,000 wouldn't by itself trigger the filing requirement. There is no tax involved here; this is just an information return that the government requires.

sathvick said:
(iii) FATCA regulations
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The FATCA rules require U.S. persons to report certain financial accounts that they hold outside the IRS. You aren't a US person and not subject to those rules. And just receiving a gift of cash will not make your friend subject to FATCA reporting. Unless he's got bank accounts or other financial investments outside the US he won't need to worry about this either.
 
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quincy

quincy

Senior Member
Taxing Matters no doubt appreciates the thanks so thank you.


(Temporary bump to remove spam from the main board)
 
Z

zddoodah

Active Member
quincy

quincy

Senior Member
zddoodah said:
Perhaps...

May be....

Perhaps....

May be....

Perhaps....

Let's let the OP tell us the ACTUAL reason (or ignore the questions) rather than speculating about hypothetical reasons. :)
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It appears Taxing Matters was able to address the concerns of sathvick adequately. ”Perhaps” and “maybe” are perfectly legitimate responses, by the way, when all facts are not known - and all facts can rarely be learned in a forum setting.
 
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