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Lev, Tax Preparer
Category: Finance
Satisfied Customers: 29581
Experience:  Personal Investment, Tax Preparation
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I have around $300k in a non US bank account that I would

Customer Question

Hi, My name is ***** ***** I have around $300k in a non US bank account that I would like to bring in top US and invest. Do I need to declare this to IRS? Will I have to pay taxes on this? What is the process? Appreciate you advice on this matter.
Submitted: 1 year ago.
Category: Finance
Expert:  Lev replied 1 year ago.

You report to the IRS your income.
To verify - we need to know the source of funds and if you are an US person or a nonresident alien?

Customer: replied 1 year ago.
Hi, I am a nonresident alien (Greencard Holder) Soon to be a resident. The funds are coming from a friend who is giving me a loan. I know it sounds odd but that is it. I am planing on investing that money to grow my real estate portfolio in CA. I have already brought 100k to US end of 2014 and I invested that to in a new rental property.I did not have any issues then. But I would like to get more information on the process.
Customer: replied 1 year ago.
I do report to the IRS my income I am on a W2.
Expert:  Lev replied 1 year ago.

Several issues...

First of all as a green card holder you are a resident alien for tax purposes - please be aware that residency for tax purposes is determined differently than for immigration purposes.

As a resident alien - you are taxed on all your worldwide income - same as for US citizens.

The loan is NOT your taxable income - as long as there are realistic expectations that the loan will be paid back.

Expert:  Lev replied 1 year ago.

The fact of transferring the money is NOT a taxable event.
So that fact alone doesn't trigger any tax liability.
There is NO limitation to transfer the money to the US - and there is no any tax liability just because of the transfer,
Probably the safest way is the bank-to-bank transfer.
You might want to shop around to compare bank fees and currency conversion rates.
Please be aware - if you are taking cash over $10,000 - that must be declared to customs - and you might be asked source of your money.
If you transfer to your bank account - please be aware that band report all suspicious transaction to FinCen. If you think that your transfer might look unusual - you may inform your banker before the transfer and provide them information with supporting documents about the source of your money.

Customer: replied 1 year ago.
Hi Lev, So if I do a bank to bank wire transfer from my friends account to my account like I did before I should not have any tax related issues? Also it is the banks (Well Fargo) responsibility to inform US customs? In other words I do not have to fill any forms or inform any authority when I get the money in to a US personal bank account?
Expert:  Lev replied 1 year ago.

Correct - a loan is NOT taxable income.
Correspondingly - when you will pay back a loan - that amount woudl not be deductible.
Transfer of funds are not subject to US customs - there is nothing to report.
I suggest to keep documents which support your position that the wire transfer is a loan for which you are responsible to pay back.

Expert:  Lev replied 1 year ago.

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.