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Gift Tax on gifts received

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What is the name of your state? California

Thank you for your help and advice ;)

My wife and I are buying a house. She is US citizent and I hold a green card with registed residence in California. My parents sent us a $50,000 wire transfer gift from Spain for the down payment.

Although I was adviced that there is no tax implied for us, receiving the money, I read on the internet about Gift Taxes.

Do we have to pay taxes on the gift being received?
Is the $11,000 annual non-taxed-gift limitation applied to the giver, the receiver, or both?




It is the giver who can be subject to gift tax. When the gift exceeds $11,000 to a particular individual, then a gift tax form 709 is required to be filed by the giver. Following the form reveals the fact that a tax is calculated based on the amount of the gift less $11,000, and is then offset by a credit against that tax.

For example, If the entire $50,000 was given to you by an individual subject to U.S. taxes, then a tax would be calculated on $39,000.
However, a pre-set credit printed on the form would more than offset the calculated tax.

Not sure if your parents are subject to U.S. tax.

Anyway, good luck on the house and enjoy having good parents.


Senior Member
You have no gift tax liability. Your parents have no liability since they are not US citizens or residents. (If they were citizens, you wouldn't need a green card.)

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