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As a US citizen in Saudi Arabia, do I need to report gifts to the IRS?

Yes, if you receive gifts exceeding $100,000 from a non-US person during the tax year, you must report them using IRS Form 3520.

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When must I report gifts?

You need to report gifts if their total value from a non-US person exceeds $100,000 in a year. Use Form 3520 to disclose these gifts.

What information do I need to report?

On Form 3520, you must provide the following information:

  • Date of receipt
  • Description of the gift
  • Confirmation that it’s from a non-resident alien
  • Value of the gift

Are there tax implications for receiving gifts?

The gift itself isn’t taxed, but any income generated from it, such as rental income, must be reported on your US tax return.

How do I report rental income?

Report rental income from a gifted property on Form 8858, which is included in your tax return package.

Should I seek professional advice?

Yes, consulting a tax professional is recommended to ensure proper compliance and accurate tax filings. They can provide guidance tailored to your situation.

Why partner with a specialist Expat accountant?

Living outside of the US can make your tax filing requirements complicated. To ensure you pay the minimum amount of taxes, it’s critical to work with an accountant who understands every aspect and avenue for reducing your tax liability. We have a dedicated team of tax accountants who work exclusively with US expats earning and investing in Germany. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.


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