Introduction to the basic knowledge of American inheritance tax and gift tax

China people like to invest in real estate and pass it on to the next generation. There is no problem that China does not levy inheritance tax, but the situation in the United States is quite different. Therefore, it is best for new immigrants to understand the inheritance tax and gift tax in the United States before buying a house in the United States, so I will introduce it well. 1. What are gift tax and inheritance tax?

Both gift tax and inheritance tax in the United States belong to property tax. Gift tax applies to a person's free gift before his death, and inheritance tax applies to the property behind him.

In addition, the taxpayer of American inheritance tax and gift tax is the donor (donor), that is, whoever gives money will pay taxes. Moreover, the property donated or inherited by the donee is not regarded as income, and there is no need to pay personal income tax.

2. When will the gift tax and inheritance tax be involved?

When the donor is a resident of the United States or the donated assets are assets within the United States, the gift tax and inheritance tax in the United States may be involved:

● American residents who give any assets to anyone have to pay American inheritance tax and gift tax.

● Non-US residents donate assets outside the United States to US taxpayers. (Note: When the total amount of overseas gifts received by U.S. tax residents in one year reaches $654.38 million+,they need to declare these gifts to the tax bureau at the same time when filing personal income tax, but this will not increase their tax burden. )

● Non-US residents give assets in the United States.

3. The life allowance for residents with American status is 5.43 million.

The lifetime allowance for residents with American status is 5.43 million. However, when a person with foreign status donates or inherits American property, the lifetime tax allowance is only over 60,000, and the highest gift tax or inheritance tax is 40%.

4. Declaration of annual exemption

According to American law, if the amount donated by the donor to the donee in that year is less than $654.38+$04,000, there is no need to declare American inheritance tax and gift tax. This quota of 654.38+400,000 is assigned to each recipient. For example, my brother in America gave my brother and sister-in-law $65,438+4,000 each, and sister-in-law also gave my brother and wife $65,438+4,000 each (a * * *1.4,000 * 4 = 56,000). In this case, no one needs to declare gift tax. The annual declaration amount of $654.38+$400,000 is applicable to US residents and non-US residents.

Reminder: after landing, you need to declare the tax of the previous year before April 15 of the following year. The contents of tax declaration for new immigrants are divided into three parts: income declaration; Declare overseas bank accounts and overseas financial assets; If the shares in the enterprise reach 10%, the financial statements of the enterprise should also be reported to the US government.