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Canadians giving gifts to Americans

Cash Gift

Canadian parents (who are not Americans/Green Card Holders) often want to want to give gifts to their children who are US citizens or Green Card holders. 

According to the IRS, a foreign gift is money or other property received by a US person from a foreign person that the recipient treats as a gift or bequest and excludes from gross income. 

If the child is an American or Green Card holder they may be required to file Form 3520 with the IRS. Form 3520 does not result in taxes payable - it is an information return, and is due on the date that your income tax return is due, including extensions. 

Not all gifts are required to be reported. Form 3520 must be filed if you are a US person (which includes a Green Card holder) who receives either:

  • More than $100,000 from a nonresident alien individual or a foreign estate that you treated as gifts or bequests; 

              or

  • More than $14,375 from foreign corporations or foreign partnerships that you treated as gifts.

If either applies, the US gift recipient is required to file Part I and IV of Form 3520.



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