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Author: KATinChicagoland Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120809  
Subject: Re: Taxing Gifts Date: 6/6/1998 12:32 AM
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<<Is there a limit on the value of (cash) gifts that I can receive before I have to pay tax on the gift? Is this per gift or per year? What rate do I have to pay (as if it were extra income or is there a special rate?)

My parents are wanting to send me some money (they live in the UK if that complicates things?) and I would like to find out if I am going to be hit for taxes on that money....>>

The U.S. gift tax applies to the giver, not the recipient. And if the giver is neither a citizen nor a resident of the U.S., there's no U.S. gift tax on the giver, either. Furthermore, the recipient of a gift doesn't have to report income for U.S. income tax purposes, no matter how large the gift is. The basics are explained in:

http://www.fairmark.com/begin/gifts.htm

Kaye Thomas, author
Fairmark Press Tax Guide for Investors
http://www.fairmark.com
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