# Foreign Loan Transfer



## Phuster (Apr 12, 2015)

Hello,

I've lived in Sweden for over a year. My future mother in law took out a loan for me (35kusd) and transferred it to my mother to pay off my student loans in both of our names. Are there tax implications for my mother?

Regards


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## BBCWatcher (Dec 28, 2012)

For the U.S., "probably" the gift is U.S. tax free. (I'm assuming you and/or your mother are U.S. persons.) However, your mother and perhaps also you as well may need to report the gift using IRS Form 3520, assuming your future mother in law is not a U.S. person. (If she is then she has to report the gift, but that's a different form and again no tax owed.) Watch out for the deadline on that 3520 since it's separate from a tax return.

Sweden might have more strict rules here, actually. I happen to know the Nordics, including especially Sweden, have rather strict gift tax rules.

What a nice thing for her to do!


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