U.S. Gift tax rules and returns – What #Americansabroad need to know about marriage to a non-citizen

Good summary: Gift Tax Returns: What You Need To Know http://t.co/AbxvMTploH via @forbes #usexpat

— Tanager Wealth (@TanagerWealth) April 14, 2014

This is a nicely done article by Deborah Jacobs of Forbes.

As you know, a U.S. citizen who is is married to a non-U.S. citizen does not have the benefit of the unlimited marital deduction. Although I recommend the complete article, the following is of particular note:

Are there special rules for married couples?

Yes. The most important one is that the usual limits on lifetime gifts don’t apply. If your spouse is a U.S. citizen, there’s an unlimited marital deduction for most gifts, even if they exceed the annual exclusion amount and you generally are not required to file a return.

A different rubric applies if your spouse is not a U.S. citizen. In that case you must file a gift-tax return if your gifts to him or her total more than $145,000 per year. Additional gifts to a non-citizen spouse count against your $5.34 million basic exclusion and must be reported on the gift-tax return.