Re: Gift tax question
 

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100% sure on that? And is there a limit?

Hypothetically if I received 100K in 2006 from someone, I don't have to do ANYTHING about it in regards to the IRS.

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Yes, I am sure. If you hypothetically gave me more than $12K of your gift, you have to file a form (but not pay any tax) and I have to do nothing.

-Tom

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Awesome, thank you so much.

Re: Gift tax question
 

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Begin paying taxes to who? This guy has nothing to do with the US whatsoever I assume. He paid income tax in his country, now wants to give gifts. Why would this ever be taxed or use up any kind of credit? He's never even heard of the IRS...

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The US gift tax only applies when a US citizen gives more than $12,000 to a non-spouse US citizen in a year. OP talked about someone from the UK giving the large gift. I switched it in my example; the gift-giver was a US citizen. When they give more than $1 million+ over their lifetime, they begin paying the gift tax to the IRS (that is, US Treasury, US government).

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Also, a random thought - what if a person loans you $1 mil USD deferred for 99 years (even if he is a US citizen)?

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If it's a true loan, paid at a fair market interest rate, then there is no gift involved, and no gift tax return has to be filed.

-Tom

Re: Gift tax question
 

Only US gift-givers would owe tax, and only if they surpassed both their $12k annual gift exclusion as well as the $2mm lifetime estate exclusion, assuming they are not giving to their spouse, which is unlimited.