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Posted by John Levine on April 28, 2008, 4:43 pm
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>> >I believe if you bring into the country over $10,000, you may have to
>>>pay a customs duty.
>>
>> Uh, no. Guessing isn't helpful.
>>
>> A quick look at the CBP web site confirms that if you carry $10,000 or
>> more in cash or "monetary instruments" you have to file a FinCEN 105
>> form.
>
>The form 105 is used to notify the IRS to see if you must pay a tax, not a
>custom duty.
Actually, no. FinCEN 105 is about money laundering, which is why it
applies to cash taken out of the country as well as brought in. It's
perfectly legal to carry all the cash you want, so long as you're not
doing something illegal with it such as buying or selling drugs.
>So I was mostly right.
Whatever you say.
Incidentally, none of this applies to money wired in or out, or to
checks (unless they are signed and don't have the payee's name) so
it's irrelevant to the original question.
R's,
John
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Posted by Taylor on April 29, 2008, 12:35 pm
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>>> >I believe if you bring into the country over $10,000, you may have to
>>>>pay a customs duty.
>>>
>>> Uh, no. Guessing isn't helpful.
>>>
>>> A quick look at the CBP web site confirms that if you carry $10,000 or
>>> more in cash or "monetary instruments" you have to file a FinCEN 105
>>> form.
>>
>>The form 105 is used to notify the IRS to see if you must pay a tax, not a
>>custom duty.
>
> Actually, no. FinCEN 105 is about money laundering, which is why it
> applies to cash taken out of the country as well as brought in. It's
> perfectly legal to carry all the cash you want, so long as you're not
> doing something illegal with it such as buying or selling drugs.
>
>>So I was mostly right.
>
> Whatever you say.
>
> Incidentally, none of this applies to money wired in or out, or to
> checks (unless they are signed and don't have the payee's name) so
> it's irrelevant to the original question.
>
> R's,
> John
>
Form 105 is used to notify the IRS for income tax reporting purposes and for
money laundering purposes (http://www.irs.gov/irm/part11/ch03s25.html). An
individual carrying monetary instruments must file it. Certain bank
transactions, such as a wire transfer of $10,000, are already reported to
the IRS by the bank, so the individual does not need to file a duplicate
report.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by mich_b01 on April 29, 2008, 9:21 pm
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>
> > We have a tax client who received a wire transfer of $15,000 from
> > oversees
> > to purchase a home in the USA Is the wire transfer considered a gift
> > or a
> > taxable event?
>
> I believe if you bring into the country over $10,000, you may have to pay a
> customs duty.
>
> > ========================================= MODERATOR'S COMMENT:
> > Facts & Circumstances. What was the intent of the transfer?
> > Why do you think it is not a gift? Is T filing NR?
Many thanks.
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by removeps-groups@yahoo.com on April 25, 2008, 12:19 pm
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> We have a tax client who received a wire transfer of $15,000 from
> oversees
> to purchase a home in the USA Is the wire transfer considered a gift
> or a
> taxable event?
If the gift is from a person then no. If the total gifts from a
related people are 100k or more, then you have to file form 3520
within 90 days of the event, and the penalties for failing to file of
filing late are (too) steep. There is no tax due, just the
requirement to file.
If the gift is from a corporation and the amount if over 14k or so,
then the US recipient has to pay tax.
http://www.irs.gov/pub/irs-pdf/i3520.pdf
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Tom Russ on April 25, 2008, 12:23 pm
Please log in for more thread options > We have a tax client who received a wire transfer of $15,000 from
> oversees
> to purchase a home in the USA Is the wire transfer considered a gift
> or a
> taxable event?
Well, that depends on additional information that you haven't
provided, namely why the wire transfer was made.
If the $15k was a gift, say from parents or other relatives, then it
is a gift.
If the $15k was payment for services, then it would be earned income
and thus taxable.
If the $15k was a transfer of funds from an overseas account owned by
the tax client to his US account, it would not be taxable.
There are other scenarios possible as well, some of which would be
taxable.
Also, there may be reporting requirements as well.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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