Bringing money from another country to purchase a house here?
If a large amount of money like 40-50k is brought here from a foreign country, and some wants to use it to buy a house will they be taxes by IRS? I know there is a fee to transfer the money here, but should the IRS tax these money since it will be use for a house purchase.
It’s someone who sold a property there back in may and they have the money in the bank. The paid taxes there.
July 22nd, 2010 at 4:30 am
Whose money is this?
Yours? Non issue as you would have been reporting the bank account(s) every year on the form TD F 90-22.1.
A gift from mom and dad? Non-issue. You file an IRS form 3520.
PS “It’s someone who sold a property there back in may and ” –if that someone is a us person (either US citizen or resident alien for tax purposes), then they a) have to report the sale on their US tax return (use form 1116 for a tax credit on taxes already paid) and report the bank account to the treasury department next June.
July 22nd, 2010 at 4:52 am
If you bring money in from another country, it would not be taxable to the recipient .The earnings from that money earned in the US will be.