Manuel, a citizen and resident of Argentina, makes a gift to his children of a ranch located in Colorado. Manuel will be subject to the U.S. gift tax.

Question

Quizplus · Accepted Answer

The U.S. gift tax is applicable to non-U.S. citizens making gifts of U.S. property, including real estate. Therefore, Manuel will be subject to the U.S. gift tax on the value of the ranch gifted to his children.

Manuel, a Citizen and Resident of Argentina, Makes a Gift