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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
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I , my spouse and kid all got our green cards just 4 months

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I , my spouse and kid all got our green cards just 4 months before in USA but now my spouse has already surrendered his Green Card and is again non-resident here in USA as he was before GC because he lives in India most of the time of year and files his Tax Return there in India . I keep on transferring a part of my US Tax paid salary to my spouse's bank account in India . Please advise what are my tax implications and do my spouse need to file US Tax Return also or do i need to disclose my spouse bank accounts and his assets of India here in my US Tax Return ?

LEV :

Hi and welcome to Just Answer!
Any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.
If you do have a financial interest in teh account abroad or signature authority on your spouse's accounts abroad - you do need to disclose them - that is so called FBAR reporting.

LEV :

Generally, no gain or loss is recognized on a transfer of property from you to (or in trust for the benefit of your spouse. Gifts to a spouse who is not U.S. citizens should be reported on the gift tax return if above an annual exclusion which is $133,000.

Customer:

ok

LEV :

Please let me know if you need any help or clarification.

Customer:

so if my spouse is non-resident and he files his tax returns in india and i just transfer my US Tax paid salary to support him or others , then i dont need to disclose my spouse bank accounts in FBAR here in USA , right ?

Customer:

i understand that i should noy buy or invest that money in my name in India and if i do , then that will be subject to FBAR reporting to me as it was in my name

LEV :

As a green card holder - you are required to file your US tax return.
You may do whatever you want with you money - you may transfer them to your spouse abroad, etc - these are your money and you are free to use them as you want.
If you do have a financial interest in the account abroad or signature authority on your spouse's accounts abroad - you are not a subject of FBAR reporting.

Customer:

so i understand that if i dont have any signature authority or name in a asset which was bought by my spouse in India with my money i transfered from USA after paying tax to US Govt. , then i am not required disclose it in US Tax return or FBAR reporting . Am i right ?

LEV :

You do not need to report assets. FBAR reporting requires to report financial accounts - not assets.

LEV :

Also - if you have a financial interest in the account abroad - it shoudl be reported even if your name is XXXXX XXXXX that account.

Customer:

what will determine to be a financial interest ?

Customer:

if i send some amount to my spouse bank account in india or some other relative , how will it be determined that it has my financial interest or not

LEV :

What will determine to be a financial interest?
You ownership.


If I send some amount to my spouse bank account in India or some other relative, how will it be determined that it has my financial interest or not?
If you have ownership over these funds - you have financial interest.
If you do not have ownership over these funds - you do not have a financial interest.


Customer:

is this line typed by you is correct ? please review If you do have a financial interest in the account abroad or signature authority on your spouse's accounts abroad - you are not a subject of FBAR reporting.


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LEV :

If you do NOT have a financial interest in the account abroad or signature authority on your spouse's accounts abroad - you are not a subject of FBAR reporting.
Sorry for typo.

Customer:

no problem

Customer:

if i am on re-entry permit with GC and totally living in India for 2 yrs , doi need tofileUS Tax returns in these twoyrs

Customer:

if i am on re-entry permit with GC and totally living in India for 2 yrs , do i need to fileUS Tax returns in these two yrs


LEV :

Yes - as a green card holder - you are a subject of same filing requirements as all other US persons.
You might be eligible to exclude foreign earned income - but still might be required to file a tax return as long as your income is above the threshold.

Customer:

and do FBAR also ?

LEV :

yes

Customer:

ok

Customer:

thanks

Customer:

bye

LEV :

The purpose of FBAR is to fight with money laundering.
There is no reason to avoid reporting if you have nothing to hide.

Customer:

ok

Customer:

i appreciate

Customer:

thanks

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