Immigrating with $20,000,000

[rajkanwar 0]

Hi,

I have discussed with some friends but haven't got a clear answer to the following:

Over the years I have collected through my investments about US$20 Million and now I am planning to immigrate to the US from Dubai. So after I reach US I want to open an account in the US and transfer the $20 Million (approx) to my new account.

My question is whether I will be taxed on the money that I bring into US? And if so, at what rate?

Thanks

[Boiler 45,794]

You will be taxed on the income it produces here, not bringing it in.

[Done--Really 331]

That is true -- no tax on the principal-- just on the income it produces once it is here. You must declare it since US law says that any amount over $10K must be declared. It can get tricky as to opening a new account since all funds brought in from outside the country are scrutinized by the regulators -- your bank or brokerage new account forms will dig into the details, and once they are satisfied, the actual transfer is a piece of cake.

[mtempelaar 190]

Quite honestly someone transfering $20m, which is a massive amount, should be hiring a team of professionals (lawyers, tax accountants, etc) rather than going to a do-it-yourself website.

That amount is way way over the $10,000 minimum for paperwork related to money laundering. You should be finding an international bank with a multi-currency account (in my humble opinion) but even still, red flags all over the place for anti-money laundering regulations. And I don't want to appear racist because I'm not - but I feel the need to point out else something on the red flags - you will already kick off every review of your money but you are also coming from the Middle East and the US is on the search for money being funneled for terrorism. If you do this, you need to follow the letter of the law step by step and a DIY website is insufficient.

I re-iterate - hire a team of professionals experienced in this.

[JohnR! 5,495]

If you're transferring the money through a financial institution you should be ok and surely your financial advisers will be able to recommend the best route. The only thing the US will require is that you show evidence of the origin of the money.

Hi,

I have discussed with some friends but haven't got a clear answer to the following:

Over the years I have collected through my investments about US$20 Million and now I am planning to immigrate to the US from Dubai. So after I reach US I want to open an account in the US and transfer the $20 Million (approx) to my new account.

My question is whether I will be taxed on the money that I bring into US? And if so, at what rate?

Thanks

[rajkanwar 0]

Thank you all for your advice. I plan to hire professionals both in Dubai and the US to advice me on the transfer. I posted here as I wanted some preliminary information. If Middle East will raise flags, I have the option to first move my funds to somewhere like Singapore. Also I have full intentions of declaring the transfer to proper authorities at the appropriate stage.

My main concern was that the principal should not be taxed. Which you all say that it won't be.

[mtempelaar 190]

Thank you all for your advice. I plan to hire professionals both in Dubai and the US to advice me on the transfer. I posted here as I wanted some preliminary information. If Middle East will raise flags, I have the option to first move my funds to somewhere like Singapore. Also I have full intentions of declaring the transfer to proper authorities at the appropriate stage.

My main concern was that the principal should not be taxed. Which you all say that it won't be.

Don't think moving it to Singapore with help you on the red flags. You yourself are coming from Dubai and you are over the 10k threshold for reporting things. If anything, transfering to Singapore and then to US may raise even more of a flag of money laundering. Hire those pros and you will be ok.

[Mike&Imelda 3]

Hi,

I have discussed with some friends but haven't got a clear answer to the following:

Over the years I have collected through my investments about US$20 Million and now I am planning to immigrate to the US from Dubai. So after I reach US I want to open an account in the US and transfer the $20 Million (approx) to my new account.

My question is whether I will be taxed on the money that I bring into US? And if so, at what rate?

Thanks

Do proper pre-immigration planning. If you bring in $20 million it may not be subject to "income" tax, but once you become a US person (resident or USC) it will be subject to US Estate, Gift and Generation Skipping Transfer taxes at a rate of 40% (on assets over your exempt amount a bit more than $5 million). So, say you die a US person, you will owe about $6 million in estate taxes right off the bat (plus 40% on any appreciation).

Instead, set up an "inbound" trust before you enter the US and get your green card. You can receive distributions from the trust. Once you get your green card, you are arguably already a US person, and it is likely too late to set up. Once you immigrate, you will be taxed on the income of the trust (which you can distribute to yourself), but you will protect the assets from US estate and gift tax as long as assets are in the trust. You will have some US filing requirements (such as Form 3520-A) but it is well worth it.