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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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When transferring funds (euros 22,000) in december 2015 from

Customer Question

When transferring funds (euros 22,000) in december 2015 from France to US - as French Bank did not want to hold the funds anymore - do we have to declare the added values to the IRS. Funds were a gift more than 15 years ago of at that time about euros 10,000 from their French grand mother to children who were born and always resided in the US. Now the children are adults.
How shall we proceed.
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Submitted: 6 months ago.
Category: Tax
Expert:  Lane replied 6 months ago.
Hi,...THis is not a taxable event....If you HAD just received the gift, then there is a declaration form (not a tax form but rather something treasury just uses for money tracking purposes) that should be filed ... if the GIFT is more than $100,000....However, simply moving the money (regardless of medium used; wire transfer, check, ach, etc) is not a taxable event at all....If you'd like to go ahead and declare the money as a gift (to take the very conservative approach) here's the form....https://www.irs.gov/pub/irs-pdf/f3520.pdf...But honestly, this is more accurately you simply transferring an asset that you already own from one location to another, (and again, will only cause tax as you generate dividends, interest capital gains, etc. - depending on how/where you invest/deposit the funds - going forward)....Please let me know if you have questions...Lane......I hold a law degree, (concentration in Tax Law, Estate law & Corporate law), an MBA, (specialization in finance & tax), as well as CFP and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, on three continents, since 1986.
Expert:  Lane replied 6 months ago.
P.S. ... just looked back and saw that you provided the amount....22,000 (26400 USD or so) is well below the filing threshhold anyway....Not need to report anything here at all....Please let me know if you have any questions at all....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the smile or stars on your screen, and then clicking “submit”)…I receive no crediting at all unless you rate in this way....Thank you!Lane
Expert:  Lane replied 6 months ago.
DId you see my answer?...Again, simply transferring assets from point A to point B is not a taxable transaction....Taxable transactions can be sales (capital gains or losses - and income tax), gifts (gift tax charged to the giver, a transfer tax), or earned or passive income(salary & wages or interest and dividends)....This is none of these. This is simply a transfer of location where ownership does not change hands....The US tax code (unlike SOME other states) does not have a "partriation" or "repatriation" tax. ... because as tax residents you are ALREADY taxed on all worldwide income.

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