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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15747
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am receiving a payment of USD$200,000 from a deal in Hong

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I am receiving a payment of USD$200,000 from a deal in Hong Kong which I want to transfer to my US bank account and invest in the US after paying taxes. I was earlier in the US on a f-1 student visa and then on a G4 diplomatic visa and the bank account is from that time. I no longer reside in the USA. Can I get the money into my US account and then invest in the US?

Robin D :

Hello and thank you for using Just Answer,
As a Nonresident Alien of the US you are not prevented from having or depositing money in a US bank account. You are not taxed in the US on any intersest earned in the account either.


Subsections 871(h) and (i) of the Internal Revenue Code provide that interest income that is not effectively connected with a U.S. trade or business shall not be included in the gross income of a nonresident alien, provided that such interest income arises from one of the following sources:



  1. A U.S. bank

  2. A U.S. savings and loan association

  3. A U.S. credit union

  4. A U.S. insurance company

  5. Portfolio Interest (Described in Chapter 3 "Exclusions From Gross Income"

    The bank will request documentation from you. A nonresident alien individual should not deliver Form W-9 to a U.S. bank, U.S. savings and loan association, U.S. credit union, or U.S. insurance company. Instead, he should deliver Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding to such institutions in order to put them on notice that he is a nonresident alien and that the interest income accruing to his account at such institutions is not reportable to the IRS, except in the case of U.S. bank accounts held by residents of Canada. Refer to Treasury Regulation 1.6049-8(a).

    You will need to work with your US bank in transferring the money to your account. They will be able to walk you through the banking requirements.

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Customer: replied 5 years ago.
Dear Robin, thanks. I had a follow-up: if I get a wire transfer from Hong Kong from a third party to my US account (I am not a US resident) for $200,000 what forms will I have to submit, if any? Source of the funds will be propoerty sale in Asia.
Please inform me if I need to pay you more for advise on this.

Nothing to the IRS on the transfer. Only US persons are required to report gifts from NonUS persons that are over $100,000. A US person would use form 3520 to report gifts or inheritances that over the limit. On a sale of property, the US person would also be required to report the sale of property on their US return or in the case of a Non US person, the property would need to have been in the US to be liable for taxation in the US.

 

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