Are there any rules regarding receiving monetary gifts from family abroad? My fiance's parents want to wire us $25,000 from Brazil to be used on a down payment on a house. What are the tax or other implications?
From the OP in a comment:
I did some research and I think I found the answer at the IRS. Here http://origin.bankrate.com/brm/itax/tax_adviser/20060823a1.asp and http://www.irs.gov/pub/irs-pdf/i3520.pdf Essentially, for a gift from a family member there is a reporting threshold of $100,000. Meaning, if you receive less than $100,000 gift from family abroad, you don't have to report it. – user1966 Sep 11 at 3:01
I would create documentation for the gift by having the giver write a short note. That way, if the IRS questions a large transfer to you, you can show that it is a "gift" and not "income."
If the GIVER were in the U.S. the gift would be limited to something like $11,000 per year, ($22,000 per couple), per recipient. The giver would have to report and pay a "gift tax" on anything above that.
But one giving couple can give a total of $44,000 a year to one receiving couple ($22,000 per recipient).