Editor’s Note: This article is Part I of a three-part review of U.S. taxation of gifts by nonresident aliens. Parts II and III are scheduled to appear in later issues.
Individuals have multiple reasons for making gifts to loved ones. Those reasons frequently dictate both the subject matter of the gift and its timing. Gift giving can be simple or complicated, depending on any number of factors. The tax impact of the gift on the donor is one of those factors. When the donor is a nonresident alien (NRA), those considerations can be particularly complicated. This article explores the federal tax impact on gifts of U.S. property by an NRA.