US Gift Tax Question?

You must look at IRS form 3520. As a resident alien, you are a US person and you said the house is worth more than $100,000 which is the reporting point. No tax, just paperwork.

recipients of gifts are not taxed on them

Under US law, gifts are not taxable to the person receiving the gift. The giver, if they reside in the US, must file a gift tax return. If whoever gave the gift lives in India, US law does not apply to them.

Update: Person receiving the house doesn't have to report anything to IRS. Mother has zero obligation to US law. She may have some obligation under Indian law.

1. No, gifts are not taxable to the recipient

2. Not unless the person gifting it is in the US and subject to US federal tax, then it must be reported, but unlikely they'd owe anything, it's well below the lifetime exclusion.

There must be better way than asking on yahoo answers. We live in northern europe and we re raidents of northern european country, we have a house in the south of france. We pay taxes here and there. I m sure there is a phone number u can call or an email address for irs and then a profssional answers to u

Kindly PAY a tax accountant like everyone else..

And for all of y’all, foreign income IS taxed. So if you sell the house, or rent the house to receive income then that income is taxable. If not, all millionaires would just move their money overseas and don’t pay.

A gift is not legally considered "income", so there is no income tax on it. Any "gift tax" would be handled by the estate of the donor, not the recipient, assuming they die with more than $15 million in the estate, or whatever other taxes their state might charge.

Because the property is in India and given from one Indian citizen to another, it shouldn't be subject to US taxes.

In the US, gift tax is entirely separate from income tax. Instead, gift tax is combined with estate tax. The recipient never pays tax on a gift or inheritance; that tax is paid by the giver / estate.

If this transaction had occurred within the US, the value of the house would count against the giver's estate tax exemption.

Probably not. In the U.S., the person who GIVES is taxed, not the person who receives the gift. If the person who GAVE the house had no connection to the U.S., then it's not taxable or reported in the U.S.