Hi,
I am going to buy a house in the US. My brother in China wants to send me some money ($50k) to pay for the downpayment.
does anyone know if I need to pay tax and if there is a way to work around it?
thanks in advance
Anonymous
Favorite Answer
Is this a loan or a gift? Neither causes you to owe tax.
If it's a loan, be sure to pay your brother back--but realize that if he lives in China, you can't deduct the interest on your taxes.
Since the amount is less than $100K, you do not need to file IRS form 3520.
wackoscooba
If your brother "lends" you the money...there is no tax on loans.