money received from overseas

[ptadeleste]

Hello from Connecticut
my aunt (she lives in South America) is giving my husband and I about 130,000 dollars since she wants us to have it before she dies.(She has no children) She is 82 years old.
Do I have to report that here in the US if it's wired to our account?
How does it work?
thank you

 

[dee_dub]

As I understand it, you are not required to report the gift on your tax return, although you are required to report any income earned on the gift money. Your aunt is required to pay whatever tax her unnamed S.American country imposes on the giver of the gift.

Your bank will file a Currency Transaction Report with the authorities as a matter of routine compliance with the regulations.