Hello and thanks for the response. So for both of the sources cited I would say that it is irrelevant since mine is an electronic transfer of money on books and these talk about checks. These are radically different things for tax law. My attorneys are of the same opinion.IRS General Counsel Memorandum 34845 and General Counsel Memorandum 36860 take the position that cash is tangible property and that giving a gift by writing a check on a bank account is treated as giving cash. Here's the conclusion from GCM 34845:I appreciate all the work you did with ChatGpt. Thank you. However I would like to point out the mistake in this logic. As you are clearly aware, regular NRA's who have never had anything to do with the US are subject to gift tax only on tangible property. So Even if intangible property is located in the US, it is still not subject to gift tax. It is clearly stated on IRS website and also can be inferred from the law article you provided. See (a)... (1) of the law you linked to. So The excerpt you provide, the one stating that bank deposits in US bank are US situs does not mean it is subject to gift tax. Since it is intangible property. This excerpt about situs is only relevant to those listed in (a).... (2). Former expatriates or those who had business or trade in the US. And this fact cannot be disputed by any available law or IRS publication.I believe this authority is the source that is being referred to in articles cited on the wiki page.Accordingly, the gift by A, a nonresident individual not a citizen of the United States, to B of checks drawn on accounts held in American banks and payable in American money is a gift of American money at the time the checks are paid, certified or negotiated for value to a third person. Such gift does not qualify for the exemption from gift tax provided by section 2501(a)(2) of the Code.
In case it is helpful to you, here is what the Thompson Reuters Federal Tax Coordinator has to say about the subject (paragraph Q-4014):RIA observation: Deposits in U.S. banks are intangible property situated in the U.S. ( ¶ Q-4012 ). Consequently, a gift of such a deposit by a nonresident alien effected by assignment of the account (generally, the bank should be notified) in the U.S. bank would appear to be tax-free unless the expatriation rule applies.
However, if the gift takes the form of a check on the U.S. bank, it would appear to result in a taxable gift. The delivery of the check, though effected abroad, doesn't complete the gift. The check could be revoked until paid. The gift is completed only when the donee collects ( ¶ Q-1916 ). If collection is made in cash, its receipt by the donee in the U.S. would result in a taxable gift, since cash is considered tangible property for gift tax purposes ( ¶ Q-4013 ). And even if the donee also resided abroad, it is doubtful whether a gift to him of a check on the donor's U.S. bank deposit would be treated as a gift of property outside the U.S.
Statistics: Posted by BogleBabe2023 — Fri Jul 19, 2024 11:27 am — Replies 19 — Views 3756