Does a cash gift of $15,000.00 fall under the gift tax rules it is from mother to son.?

Facts: Non American grandmother dies in 2005 and leaves mother realestate. In 2008, mother sells realestate (located in middle east) and offers to provide son with a one time cash gift of $15,000.00 to use in purchase of first home. Will this amount be taxable less the gift tax exclusion for 2008?

Is the mom a US person?

If mom is neither a citizen nor a resident alien, then mom is not subject to US gift tax rules (form 709).

Since the amount is less than $100,000, the son is not required to fill out form 3520 either.

If mom *is* a US person, she files the form 709, to report the taxable gift of $3000 ($15,000 – $12,000 annual exclusion). If this is the first gift she’s ever made, she won’t actually pay $540 in tax, rather she uses up that much of her lifetime estate and gift tax credit (the first $1Million is credited).

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