Is there an IRS tax on a gift of money from an international source?

My mom is getting an inheritance in South Korea (a house of her father is being sold and proceeds being split among siblings).





When she brings that money back to the United States, will there be taxes due to the IRS from essentially an international inheritance (taxes in Korea were already paid)?





If instead of keeping it herself she wants to give the money to me or my sister, is there a gift tax due to the IRS (filling out a gift tax form and just using up part of my mom and dad's lifetime gift exemption to me and my sister)?





And what is the actual best method of having those international funds transferred to an U. S. account? (wire transfer, actual check, other?)

Is there an IRS tax on a gift of money from an international source?
is your mother a U.S. citizen?


The money she inherits is not taxable in U.S.


If she gives you more than $12,000. per year she would be liable for gift tax. Your dad can also gift to you $12,000. per year for total of $24,000. They can also do the same with your sister.


A check from a foreign country is a nightmare and will cost you a couple hundred to get the money,, wire transfer is the best,, fastest,, safest way. They will no doubt be paying some fee to exchange the money into U.S. dollars.


The source is your mother.
Reply:This is not a gift of money from a foreign source. Your mother is inheriting the proceeds from the sale of the home. The inheritance is not taxed. Assuming the home was sold before it appreciated in value, there will be no capital gains to tax.





If she then gives you a gift of money, that is a gift from her, not from the foreign source. The gift is not taxed, but a gift tax return may be required of your mother if the gift is over $12,000.





As for the money transfer, deal with the financial institution handling the sale to have the proceeds sent directly to the US bank.
Reply:One thing no one appears the have mentioned so far is that while there is no FEDERAL inheritance tax in the US, some STATES have an inheritance tax. Check into that for the state where your mother lives.





I would recommend a wire transfer for actually moving the funds. The bank already knows all the reporting requirements and there is little to no risk of loss in transit.
Reply:I believe there is no tax, but you have to fill out a form if over $100,000 - I believe a 5520. If it is over that amount, make sure you check with a int'l tax lawyer.





If your mom wants to give you the money - make sure it goes directly to you from Korea to avoid any gift taxes from your mom. Or she can give you guys up to $9,999 a year and avoid gift taxes.