Money gift from foreigner living abroad to USC

[Penguin_ie 5,997]

I have a relative back home I am close to.  She would like to gift me money while she is still alive so she can see me and my family enjoying it (even if it's via FB posts). More specifically right now,  our car is old and she would like to give us the money for a newer one. My husband (both husband and I are USCs now) says she cannot send us more than $5000 at a time because  it would affect our taxes and elligibility to certain programs (our son is severely autistic and gets a form of disability due to this, to pay for his therapies in school). However, all I can find is a yearly gift limit of $14'000 per person (we could buy a nice car for less than that!), and a yearly limit of $100'000 for foreign gifts before you have to file an extra form with the IRS. 
Dos anyone have any insights into this?

[payxibka 10,047]

3 minutes ago, Penguin_ie said:

I have a relative back home I am close to.  She would like to gift me money while she is still alive so she can see me and my family enjoying it (even if it's via FB posts). More specifically right now,  our car is old and she would like to give us the money for a newer one. My husband (both husband and I are USCs now) says she cannot send us more than $5000 at a time because  it would affect our taxes and elligibility to certain programs (our son is severely autistic and gets a form of disability due to this, to pay for his therapies in school). However, all I can find is a yearly gift limit of $14'000 per person (we could buy a nice car for less than that!), and a yearly limit of $100'000 for foreign gifts before you have to file an extra form with the IRS. 
Dos anyone have any insights into this?

Foreign gifts from a non-resident alien are not taxable income.  Gifts in excess of $100,000 need to be reported

[databit 328]

The financial gift will not be treated as reportable income on your taxes (your relative should investigate the impact on her own taxes, though!). However, US welfare agencies do have the legal right to check your bank balances, which if elevated beyond their threshold, might cause you to lose benefits for your son, as they should, ethically speaking.  It would be better if you go pick out a car, and your relative send to money to the dealer. 

 

Hope this relative has no intention to immigrate to the US, as it would look suspicious! 

[EG&XY 144]

Another option to consider is to buy a car with a loan and then receive periodic payments that you immediately use to pay the loan. That could help you from having too much money in your accounts to cause an issue. Just make sure there are no penalties for repaying the loan early.

[Italian_in_NYC 259]

On 12/31/2017 at 5:44 PM, payxibka said:

Foreign gifts from a non-resident alien are not taxable income.  Gifts in excess of $100,000 need to be reported

Correct.

Just to be extra-safe have them write 'gift' on the description memo when they wire it.

Also, if all gifts or bequests from NRAs are $100,000 or more, you need to file form 3520 (potential stiff penalties and statute of limitations on the return doesn't even begin to run if you don't comply).

[Penguin_ie 5,997]

Thanks all!
No, my relative is elderly and only speaks Swiss German, she definitely does not want to immigrate or probably even visit    We did look into hr paying directly to a car dealer, but that looks more suspicious to me than any of the other options.
I think I will ask her to keep it under $5000, just to be on the safe side, and then maybe if she wants to give us more pay for a week of camp for the kid this summer or something.