transferring large dowry from China to U.S.

[novedsac 355]

That's a rather large sum that is sure to raise some eyebrows ... and perhaps some large tax liabilities which will depend on a large number of variables. Even keeping it in a foreign bank account under her name is going to trigger some reporting requirements for the bank. Some foreign banks are no longer accepting customers with US addresses for this reason.

There are plenty of shady ways to transfer the wealth which have a low likelihood of being found out.

However, to remain above board, the best way would be for her parents to disperse it in smaller amounts over a few years ... you can EACH receive $14,000 in 2014 free of federal gift tax. Sure, this amount would need to be claimed with CBP upon entry, but wouldn't trigger any additional duties or taxes. If you have children, they can EACH receive a gift of up to $14,000 in 2014 free of federal gift tax too.

These gifts would not need to be included as income. Keep in mind that the $14,000 limit is per person for the entire year ... a second gift in the same tax year that exceeds the 14k aggregate limit would trigger the federal gift tax.

[Darnell 8,478]

any monies coming across the border at POE is not taxable

and

any monies on a wire transfer is not taxable,

given their exact situation.

[novedsac 355]

Correct, as long as the money transfers to the non-USC prior to marriage it would not trigger gift tax. After marriage, with at least one spouse an USC/LPR, it would be considered a gift and fall under the appropriate IRS regulations.

However, would it not raise issues with immigration, especially considered the rather high value? That is the part that I'm unsure about.

Admittedly, I don't know much about dowries ... but aren't they usually paid by one side to the other? If the dowry is to be paid by the bride's family ... wouldn't it be paid to the groom's family then?

Bride's family giving money to the bride seems more like a wedding/engagement gift than a dowry.

[lostinblue 1,989]

We have used Bank of america before. Sit down and talk to a banker in the know about overseas transfers. We used Bank of America in China to exchange from RMB to Dollars and they wired it to bank account (Bank of America ) in our local city.If she has assets in China our government would desire to Know about them.

[dustyrah 13]

My fiancee just received her K1 visa. She will be receiving a rather large ($100,000+) dowry from her family. I heard somewhere about a 50,000 rmb limit on money leaving China? Does anyone have experience on how to bring the money into the U.S. from China? And will she be taxed in the U.S.? in China?

First of all: Sweet!!!

This may not be the right suggestion but anyways she is allowed to fly in less than $10,000 of course with declaration. I would have just left the cash in China where it appreciates to be picked up on subsequent trips.

[aaron2020 11,651]

Correct, as long as the money transfers to the non-USC prior to marriage it would not trigger gift tax. After marriage, with at least one spouse an USC/LPR, it would be considered a gift and fall under the appropriate IRS regulations.

Incorrect.

Gift taxes are the responsibility of the person making the gift. Gift taxes are not the responsibility of the recipient.

It doesn't matter if the gift is made before marriage or not.

US gift taxes will not apply for one simple reason - the gift giver is not a US citizen or LPR, and accordingly is not subject to US tax laws when making a gift.

The US likes it when foreign people make gifts to people in the US because that money will be spent in the US and help the US economy. What would be the logic to tax this and discourage the money from being sent to the US?

As long as the money came from legal sources, there is NO US TAX OF ANY SORT DUE.

The declaring part is about money laundering.

Edited February 23, 2014 by aaron2020

[Pitaya 2,577]

~Old dowry money transfer thread closed to further discussion~

~New inquiry about money transfer thread started~