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Taxation on Money Transferred from Foreign Countries to the USA

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If you are moving to the USA and transferring monies from a foreign country, the money transferred from a foreign country to the USA may not be taxable. Bank transfers from your personal foreign bank account to your personal US bank account are not reported on a federal tax return.

If it is more than $100,000 for any current year, one must report it to the IRS by filing Form 3520 and used to notify IRS with no taxes payable.  On a side note, if the money is a gift, a gift tax in the USA may be applicable. Please check with a Licensed Accountant to avoid double taxation.

LINK TO FORM  MORE INFORMATION ON IRS SITE

Please see excerpts from the IRS below.

1.      You are a U.S. person (including a U.S. owner) or an executor of the estate of a U.S. person who received (directly or indirectly) a distribution (defined later) from a foreign trust during the current tax year; or you are a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year, you or a U.S. person related to you received (1) a loan of cash or marketable securities (including an extension of credit) directly or indirectly from such foreign trust, or (2) the uncompensated use of trust property; or you are a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year such foreign trust holds an outstanding qualified obligation of yours or a U.S. person related to you. U.S. person, owner, beneficiary, and related person are defined later.

Complete the identifying information on page 1 of the form and Part III. In the case of a U.S. person that is an estate, check “Executor” on line B on page 1. If you received an amount from a portion of a foreign trust of which you are treated as the owner, please complete lines 24 and 27 in Part III. See the instructions for Part III.

2.      You are a U.S. person who, during the current tax year, received either:

a.      More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or

b.      More than $16,388 from foreign corporations or foreign partnerships (including foreign persons related to such foreign corporations or foreign partnerships) that you treated as gifts.

Complete the identifying information on page 1 of the form and Part IV. See the instructions for Part IV.

 



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