Legal Question in Tax Law in New Jersey
gift tax
my sister is neither a resident nor a US citizen, she lives abroad. She wants to use some cash from her US brokerage account for a gift to her brother who is a US citizen residing in NJ USA.Is there any gift tax involved ?
Asked on 7/13/06, 12:05 am
1 Answer from Attorneys
Lawrence Graves
Coolidge & Graves PLLC
Re: gift tax
Because the gift tax attaches only to the donor, a gift from a "non-USTP" (i.e., someone who has no other reason to be subject to US income taxation) escapes US gift tax even if the recipient is a US taxpayer. Your sister should verify that her only tax connection with the US is her "portfolio income" such as bank and brokerage accounts.
Best wishes,
LDWG
Answered on 7/13/06, 10:25 am
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