Bringing money to the USA

[Eli the Barrowboy 16]

Hi All,

So I sold my house in Northern Ireland and am transfering the money to the USA.

I think I'll use Interchnage who have the best rate today.

Does anyone know the tax implcations of bring money to the USA? Obviously I can't get a bank account in the USA until I get there but Mercedes has one so we can put the money straight in there.

Will there be negative tax implcations in doing this as we aren't married yet or should we wait until I get to the USA and open an account and then transfer the monies that way?

Either way, are there tax implications on this money to the US Govt?

R

[English Muffin 59]

Either way, are there tax implications on this money to the US Govt?

R

Nope, you won't pay any tax on money you transfer over.

[Eli the Barrowboy 16]

Either way, are there tax implications on this money to the US Govt?

R

Nope, you won't pay any tax on money you transfer over.

Thanks Muffin,

So are we best to wait until I open the account myself so that Mercedes isn't taxed. Her account is open in her and her step dad's name (so he could be a co-signee while she was in Ireland)?

R

[English Muffin 59]

Thanks Muffin,

So are we best to wait until I open the account myself so that Mercedes isn't taxed. Her account is open in her and her step dad's name (so he could be a co-signee while she was in Ireland)?

R

I waited until I had my own account, yes. You should be able to open one fairly quickly once you're over there.

[Nich-Nick 3,354]

If you and Mercedes marry this year, you will file 2008 income tax married filing jointly, so the concern of her being taxed is six of one and half a dozen of the other. You as a couple will be taxed, not on all the money but just the interest it earns from the date of deposit. If the Mercedes/Dad account is principally hers, meaning the bank reports earnings to her social security number, then Dad has no tax liability for any earnings your money may accrue. Even if you have a separate bank account, you and M will add up his, hers, theirs for reporting on you tax form.

You, of course, could file married filing separately, but normally the filing jointly is the better deal and you would owe less taxes than if filing separately.

The bank receiving the money will have to report any transactions over $10,000 by law. It's just to have a paper trail of where the money came from and is part of the Patriot Act and dealing with money laundering, providing money to terrorists, etc. They won't tax anything you bring in, but they will make a record of it.

[Lansbury 19]

Either way, are there tax implications on this money to the US Govt?

R

Nope, you won't pay any tax on money you transfer over.

If it is from the sale of a house that could in certain circumstance not be true and it could be subject to US capital gains tax on any profit. It is more than likely not taxable however.

Edited July 14, 2008 by Lansbury

[Nich-Nick 3,354]

It might have UK tax implications, but not US because it would be a UK transaction if completed in the UK before moving the money. I don't know UK tax laws about sale of houses and the gain made in the sale over the price paid.

[Eli the Barrowboy 16]

The UK laws are that if the prop[erty was your primary residence then you don't have to pay income tax on any net gains made on it.

Thanks for the tips on this guys. The US tax laws are mind boggling for someone used to the UK PAYE tax system. I think we will send $9,999 dollars right now and then transfer the rest over when I get a US bank account.

R

[VisaJourneyLady 33]

hmmmm, there was a similar question on the moving to america forum a while back. I think it was julez who advised against moving it in instalments. as that attracts more attention then doing the whole lot.

let me see if i can find it...

[VisaJourneyLady 33]

here it is: http://www.visajourney.com/forums/index.php?showtopic=129828

[Lansbury 19]

It might have UK tax implications, but not US because it would be a UK transaction if completed in the UK before moving the money.

Not what our US accountant told us. He was quite concerned that I had made a $258,000 profit on my London house and it didn't appear to have been used to buy a new house in the US.

When he checked into things we didn't have to pay capital gains tax but it was a far from as straight forward as the transaction was in the UK before the money was moved. It had a lot to do with how we purchased a house here.

To follow your suggestion further a UK endowment policy cashing out in the UK paid into a UK bank and then the money moved over wouldn't be subject to US income tax, but it is.

Edited July 15, 2008 by Lansbury

[SMB x2 0]

It blows my mind that anything you do in the UK could possibly be liable for a US tax of some sort.

[Lansbury 19]

It blows my mind that anything you do in the UK could possibly be liable for a US tax of some sort.

If you are a US Citizen or Permanent Resident you get taxed on worldwide earnings. Of course if you have paid tax on the money in the UK that can normally be offset against any US liability under the US/UK tax Treaty part of which prevents you from being tax twice on money earned in the other country.

As has been said elsewhere US tax law is a minefield and very difficult to understand. Makes you wonder how a bunch of people who kicked us out because they didn't like our tax system or want to pay it could have come up with something so punitive, diverse and complicated.

[VisaJourneyLady 33]

it's kinda like families i suppose. you deal with your own families problems and craziness, but it's hard to deal with other peoples

[Eli the Barrowboy 16]

Makes you wonder how a bunch of people who kicked us out because they didn't like our tax system or want to pay it could have come up with something so punitive, diverse and complicated.

Quote of the day, nah, year!!! Brilliant!!!

Thanks Poiteen,

I hope you are doing well!!!

R

here it is: http://www.visajourney.com/forums/index.php?showtopic=129828