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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11821
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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will have some money wire transfer from other country to my

This answer was rated:

will have some money wire transfer from other country to my account, and like to know how much tax I need to pay

NPVAdvisor :

Hi,

NPVAdvisor :

US taxes income here ... can be earned income or capital gains income ... further, they tax transfers from one entity to another, such as gift or that final gift the estate transfer

NPVAdvisor :

But simply moving money on from another country only requires that you delcare this transfer to IRS on form 3520

NPVAdvisor :

Once it is here, you will, of course, have interst or possibly capital gains taxes from sales, but moving the money without there bing a transaction, sale, gift, etc is not taxable

Customer:

sorry, the money transfer from Dubai at $1.4 million bond , how much is the tax

NPVAdvisor :

Again, if you own this asset in another county and you own it here this is just a transfer. There is no tax

NPVAdvisor :

You WILL, again have to DECLARE the money, using the form I provided

Customer:

is a gift from a friend , do I still pay tax

NPVAdvisor :

US taxes (1) earned income, (2) capital gains on sales (3) interest (4) dividends (5) and gifts of over 14,000 per year must be reported by the GIVER (but is exempt up to a lifetime limit of $5,250,000 NO you will have no tax upon transferring it here

NPVAdvisor :

Transferring in money is not a taxable event

NPVAdvisor :

BUT, the form I mentioned form 3520 (Gifts from foreign Persons) will need to be file

NPVAdvisor :

This is collected by IRS, but goes to treasry for tracking purposes (money laundering, etc)

NPVAdvisor :

The form is due with your regular taxes, but again is just a declaration of bringing in the money there will be no tax simply because of the transfer

Customer:

so I need to file for the form after receiving the money, and sent to IRS, correct

NPVAdvisor :

That's right, due same time as regular tax return

NPVAdvisor :


U.S. persons (and executors of estates of U.S. decedents) file this form to report:



  • child">Certain transactions with foreign trusts,

  • Ownership of foreign trusts under the rules of sections Internal Revenue Code 671 through 679, and

  • Receipt of certain large gifts or bequests from certain foreign persons.

NPVAdvisor :

Form 3520

Customer:

where can I get the form

NPVAdvisor :

Just click on the link I provided and it will take you to the pdf file

NPVAdvisor :

Questions?

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Lane and 2 other Tax Specialists are ready to help you


Thanks for the rating chwee

If you'd like to work with ME again just say "For Lane only," at the beginning of your next question.

Thanks again,
Lane