I am a U.S. citizen. I recently sold a piece of real estate I owned in the Republic of Serbia (where my mother was living). The money from the sale of the property will be deposited in a bank in Serbia where I will be opening an account in my name. I want to wire transfer funds (approximately $50,000 to $70,000) from the Serbian Bank to my U.S. bank account. So, essentially, I will be transferring my money from my account in Serbia to my account in the U.S. Will this be reportable to the IRS? Will the bank report it? Should I report it? Are there any tax consequences?
HelloCustomer As a US citizen, you are subject to tax on your income worldwide. This would include tax on any gain you had from the sale of your property in Serbia. The gain would be reportable and subject to long term capital gains tax which is currently capped at 15%. However, if you also paid tax to Serbia on this same sale, then you may claim a credit for the foreign tax you paid on this same transaction. As far as actually bringing the money in to this country, that in itself is not a taxable event. Anytime that you receive $100,000 or more in one year from a foreign source, then you are required to report receipt of that money by filing Form 3520 with the IRS. There is no tax due with the form, but it is a reporting requirement. However, if the amount you are bringing here to your US account is less than $100,000, then you are not required to report receipt of that money. If this was helpful please press the Accept button. Positive feedback is also appreciated. Thank youCustomer
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad