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  • Moving money from UK to US

    Haven't been on here for quite some time.

    Does anyone have experience transfering large amount of money to the US
    Story of this is my parents are British and I am wanting to sponsor them and move them over to the US.
    They are selling their house and wanting to move the money from the sale over here and buy a house here.

    Anyone know the implications, ie tax, would they need to have SSN over here before or send to my account?

    Thanks

    Doof

  • #2
    Haven't been on here for quite some time.

    Does anyone have experience transfering large amount of money to the US
    Story of this is my parents are British and I am wanting to sponsor them and move them over to the US.
    They are selling their house and wanting to move the money from the sale over here and buy a house here.

    Anyone know the implications, ie tax, would they need to have SSN over here before or send to my account?

    Thanks

    Doof

    Comment


    • #3
      If it is a gift or an inheritance, it is not taxed. You will have problems with a transfer of a large amount of funds to the US (over $10000) because of the terrorism thing.
      I think they should hold onto their money until they can come to the US and buy the house personally. They can then transfer the funds through the proper channels. and they really need to be able to prove where they got the money. They could have it all confiscated if everything is not crystal clear!!!

      A forensic accountant and or a lawyer may be of help here.

      Comment


      • #4
        If the transfer of funds is completely legal, there is absolutely no difficulty.

        Any amount of money in excess of $10,000 must be declared to the United States Customs and Border Enforcement.

        If you carry more than $10,000 through a port of entry, whether in cash or monetary instrument, you must declare same.

        If you transfer an amount in excess of $10,000 through a financial institution, the transaction will automatically be declared to Customs and Border Enforcement (even domestic transactions in excess of $10,000 are so declared).

        Assuming that the transaction is legitimate, there will be no problems. If your parents are not residents (for tax purposes) of the United States, they will have no tax liabilities here.

        Comment


        • #5
          Dear Sir
          I am assuming you will be transfering the money electronically. If not, CinFin104 would be used if the monetary amount is over $10000 when transporting currency physically into the US. If the money is a bequest, ie gift or inheritance or coming from a foreign trust, which you are the beneficiary, then form 3520 could be required and filed with your return next year. If the monetary amount is above $100k, then the form will be required. Another information reporting form is TD F 90-22.1 for people who have at least 50% ownership of foreign financial institution such as banks, mortgage companies, brokerage houses, etc. This form is filed seperately and mailed to Detroit Michigan by June 30, 2006 for transactions occuring in 2005.

          There should be no tax implications to your parents since I am also presuming your parents, although British subjects, are not LPR or dual US citizens. There would be no tax to you since you are not the owner of the money.

          If your parents are opening up a bank account here in the US, generally a taxpayer identification number is normally not needed. Your parents would need to fill out form W-*BEN to establish foreign status and beneficial owner of the account. You can have your name added for concilitory purposes, if you like. Again, this would not create a tax event.

          If you have any further questions, you can e-mail me at kwh10@sbcglobal.net

          PS I used to work for the IRS, so if you need any other questions, I am here to help.
          "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

          Comment


          • #6
            Wouldn't sending the money to his account appear as a gift and be taxable income to him?
            The above is simply an opinion. Your mileage may vary. For immigration issues, please consult an immigration attorney.

            Comment


            • #7
              Wouldn't sending the money to his account appear as a gift and be taxable income to him?
              Receiving gifts is not a taxable event to the recipient. If the donor, the one who gives the money, gives an amount greater than the annual exclusion, $12000 per person per calendar year, a gift tax return would be required to be filed. However, unless the gift is greater than $1 million dollars, the person giving the gift would not be subject to tax. There is something called a unifed gift credit that is applied to the estate once the individual passes away.

              But when a nonresident alien requires a transfer internationally, this does not mean a gift per se unless otherwise indicated. The OP gave enough informaton to deduct that the parents sold property and thus the reason why the large sums of cash. The OP would probably give this information to the bank to ensure there is no foul play for receiving the money.
              "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

              Comment


              • #8
                Banks do ask for SS# and other I.D. Even though the money may be legal and there is proof of where it came from - once it gets caught up in the wheel of government "prove it" it can be a nightmare. Some people who have their child support payments transferred have been asked questions by the banks - who have to report large transfers. I know of one child who received $500 transferred to her bank account from her overseas parent for Christmas - that child had to bring her her other parent and the transfer had to be explained. The transfer was held for two weeks before it was released to the child. Bank policy.
                But it may be different for you.

                Comment


                • #9
                  Banks do ask for SS# and other I.D. Even though the money may be legal and there is proof of where it came from - once it gets caught up in the wheel of government "prove it" it can be a nightmare. Some people who have their child support payments transferred have been asked questions by the banks - who have to report large transfers. I know of one child who received $500 transferred to her bank account from her overseas parent for Christmas - that child had to bring her her other parent and the transfer had to be explained. The transfer was held for two weeks before it was released to the child. Bank policy.
                  But it may be different for you
                  Banks may ask; however, there is no federal requirment that they must have a SS# or an ITIN. BAnks that have branches overseas or international banks do not need a SS# or ITIN. But in case the person does go through a bank which their proceedures do require some sort of Tax ID, then the person can obtain an ITIN through a W-7 without filing a tax return. They would mark in box h "exception #1," attach a W*8BEN with a letter confirming they have opened a bank account, along with the other required information to substaintiate foreign status, not eligible for a SSN, and continue existence.

                  With the child support, you may have a situation in which the state is leving the bank account because of nonsupport payments, not because of an IRS issue. Banks can file form 8300 on large money transfers, but can also file the form if they suspect fraud or any other misrepresentation.
                  "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

                  Comment


                  • #10
                    Why can't they open an account in international bank and then just pull the funds once they're in USA? Something like Citibank or HSBC?
                    Personally, I'll just do an ACH transaction or wire transfer and get it done quickly. Yes, it'll be reported to the Fed, but the effect should be minimal, if anything at all.

                    Comment


                    • #11
                      Marmaduk,
                      I agree with you in general; however he does have several options. One option is to put the account in his SSN, but not as owner. The parents would need to fill out any appropiate forms the financial institution would require for power of attorney. He could move the money to a brokerage house in a bearer CD or money market account. That way, the parents can maximize their earnings with very little risk. All this would require is a form W-8BEN to that brokerage firm and the mailing address in the US. The son would act as a representative of his parents but have no control over the account. There are other options, but it would depend on several factors for the parents and the son.
                      "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

                      Comment


                      • #12
                        Everyone, this is fantastic information, actually exceeded my expectations on the post.

                        Hudson, I may be contacting you via e-mail once my parents visit their local HSBC. My father already has an account with them in the UK and from what I read on their website they have accounts that I think fit their needs to open in the US in their name and transfer the money that way.

                        Comment

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