Tax on cash coming into USA
Apr 27th 2004, 7:33 am
#1
No, Wales isn't England
Thread Starter
Joined: Apr 2004
Location: Long Beach, CA
Posts: 2
Tax on cash coming into USA
Does anyone know if you have to pay tax on money you're bringing into the USA? So far I've transferred about $15k with no problem, but one of my Californian friends is convinced that I'll be hit with a 24% tax bill on the remaining $30k. Any advice?
Apr 27th 2004, 3:54 pm
#2
Guest
Posts: n/a
Re: Tax on cash coming into USA
On Tue, 27 Apr 2004 07:33:46 +0000, mut
<member23893@british_expats.com> wrote:
>Does anyone know if you have to pay tax on money you're bringing into
>the USA? So far I've transferred about $15k with no problem, but one of
>my Californian friends is convinced that I'll be hit with a 24% tax bill
>on the remaining $30k. Any advice?
I'm not aware of any such tax on international wire transfers. If the
money you are bringing in was the result of personal earnings in the
year (or years) you were a resident in the US, then you have to
declare and potentially pay tax on those earnings in the US. Other
than that, I don't see where that 24% tax comes from.
--
"A democracy is nothing more than mob rule, where fifty-one
percent of the people may take away the rights of the other
forty-nine." -- Thomas Jefferson
<member23893@british_expats.com> wrote:
>Does anyone know if you have to pay tax on money you're bringing into
>the USA? So far I've transferred about $15k with no problem, but one of
>my Californian friends is convinced that I'll be hit with a 24% tax bill
>on the remaining $30k. Any advice?
I'm not aware of any such tax on international wire transfers. If the
money you are bringing in was the result of personal earnings in the
year (or years) you were a resident in the US, then you have to
declare and potentially pay tax on those earnings in the US. Other
than that, I don't see where that 24% tax comes from.
--
"A democracy is nothing more than mob rule, where fifty-one
percent of the people may take away the rights of the other
forty-nine." -- Thomas Jefferson
Apr 28th 2004, 6:46 pm
#3
Guest
Posts: n/a
Re: Tax on cash coming into USA
mut <member23893@british_expats.com> wrote in message news:<[email protected]>...
> Does anyone know if you have to pay tax on money you're bringing into
> the USA? So far I've transferred about $15k with no problem, but one of
> my Californian friends is convinced that I'll be hit with a 24% tax bill
> on the remaining $30k. Any advice?
There is no tax on capital brought into the USA, nor on cross-border
remittances to the US of gifts or inheritances.
There is tax on income on that capital, and on earnings abroad while
the immigrant is subject to tax. It's for this reason that there is a
specialized field of accountancy for pre-immigration planning. (The
opportunity for such planning is substantially less than it used to be
because trusts are aggressively taxed, but it is still possible to do
so, particularly in a family situation.)
Cash imports exceeding $10,000 must be declared. Transmissions through
the banking system exceeding that amount are automatically reported.
There is no tax on those remittances, but occasionally the beneficiary
will be asked the source of funds.
There is a concept popular among tax enforcers and planners called
"subject to tax" which would like to see tax applied to any money that
has not theretofore been taxed somewhere, at a substantial rate. That
concept is conceptual rubbish, conceived of by those whose careers are
keyed to the enrichment of the public fisc. All that should matter to
you is the law. And any accumulations of assets that you made before
becoming subject to tax in the USA may freely be imported, subject to
declaration and taxation of their accretions.
In matters of taxation, street "wisdom" is the worst kind.
> Does anyone know if you have to pay tax on money you're bringing into
> the USA? So far I've transferred about $15k with no problem, but one of
> my Californian friends is convinced that I'll be hit with a 24% tax bill
> on the remaining $30k. Any advice?
There is no tax on capital brought into the USA, nor on cross-border
remittances to the US of gifts or inheritances.
There is tax on income on that capital, and on earnings abroad while
the immigrant is subject to tax. It's for this reason that there is a
specialized field of accountancy for pre-immigration planning. (The
opportunity for such planning is substantially less than it used to be
because trusts are aggressively taxed, but it is still possible to do
so, particularly in a family situation.)
Cash imports exceeding $10,000 must be declared. Transmissions through
the banking system exceeding that amount are automatically reported.
There is no tax on those remittances, but occasionally the beneficiary
will be asked the source of funds.
There is a concept popular among tax enforcers and planners called
"subject to tax" which would like to see tax applied to any money that
has not theretofore been taxed somewhere, at a substantial rate. That
concept is conceptual rubbish, conceived of by those whose careers are
keyed to the enrichment of the public fisc. All that should matter to
you is the law. And any accumulations of assets that you made before
becoming subject to tax in the USA may freely be imported, subject to
declaration and taxation of their accretions.
In matters of taxation, street "wisdom" is the worst kind.
Apr 28th 2004, 10:20 pm
#4
Guest
Posts: n/a
Re: Tax on cash coming into USA
Tam <[email protected]> wrote:
> mut <member23893@british_expats.com> wrote in message news:<[email protected]>...
>> Does anyone know if you have to pay tax on money you're bringing into
>> the USA? So far I've transferred about $15k with no problem, but one of
>> my Californian friends is convinced that I'll be hit with a 24% tax bill
>> on the remaining $30k. Any advice?
> There is no tax on capital brought into the USA, nor on cross-border
> remittances to the US of gifts or inheritances.
> There is tax on income on that capital, and on earnings abroad while
> the immigrant is subject to tax. It's for this reason that there is a
> specialized field of accountancy for pre-immigration planning. (The
> opportunity for such planning is substantially less than it used to be
> because trusts are aggressively taxed, but it is still possible to do
> so, particularly in a family situation.)
> Cash imports exceeding $10,000 must be declared. Transmissions through
> the banking system exceeding that amount are automatically reported.
> There is no tax on those remittances, but occasionally the beneficiary
> will be asked the source of funds.
Cash imports of more than $1000 will be assumed to be proceeds from
the sale of illegal drugs and the money will be consfiscated!
Andrew
> mut <member23893@british_expats.com> wrote in message news:<[email protected]>...
>> Does anyone know if you have to pay tax on money you're bringing into
>> the USA? So far I've transferred about $15k with no problem, but one of
>> my Californian friends is convinced that I'll be hit with a 24% tax bill
>> on the remaining $30k. Any advice?
> There is no tax on capital brought into the USA, nor on cross-border
> remittances to the US of gifts or inheritances.
> There is tax on income on that capital, and on earnings abroad while
> the immigrant is subject to tax. It's for this reason that there is a
> specialized field of accountancy for pre-immigration planning. (The
> opportunity for such planning is substantially less than it used to be
> because trusts are aggressively taxed, but it is still possible to do
> so, particularly in a family situation.)
> Cash imports exceeding $10,000 must be declared. Transmissions through
> the banking system exceeding that amount are automatically reported.
> There is no tax on those remittances, but occasionally the beneficiary
> will be asked the source of funds.
Cash imports of more than $1000 will be assumed to be proceeds from
the sale of illegal drugs and the money will be consfiscated!
Andrew
Apr 29th 2004, 12:43 pm
#5
Guest
Posts: n/a
Re: Tax on cash coming into USA
Andrew <[email protected]> wrote in message news:<[email protected]>...
> Cash imports of more than $1000 will be assumed to be proceeds from
> the sale of illegal drugs and the money will be consfiscated!
You made that up. I transmit funds regularly, in and out of the USA,
in amounts from $10,000 to over $100,000. I keep the supporting
documents. Never, ever, has their been a request for them.
While sequestration laws (and money laundering laws) are vicious and
arcane and give the prosecutors wide discretion, they are never
applied if you follow the rules, have a plausible source for the
money, and tax was paid -- somewhere.
That goes beyond the law in government arbitrariness. But it leaves
most people safe: most especially the recipient of funds who can show
that the money came from a foreign probate or succession. (In fact,
one is protected, more or less, by bilateral tax treaties.)
The USA, at least, does not levy a tax on the recipient of gifts where
the gift itself is not taxable (i.e., the donor was not a US citizen
or domiciliar, and the funds were not US assets). Germany and Sweden,
for example, tax the donor or the donee, and at very high rates.
Britain taxes regular (not one-off) gifts as income, with specific
exceptions.
Wild, unsupported statements like yours serve no useful purpose.
> Cash imports of more than $1000 will be assumed to be proceeds from
> the sale of illegal drugs and the money will be consfiscated!
You made that up. I transmit funds regularly, in and out of the USA,
in amounts from $10,000 to over $100,000. I keep the supporting
documents. Never, ever, has their been a request for them.
While sequestration laws (and money laundering laws) are vicious and
arcane and give the prosecutors wide discretion, they are never
applied if you follow the rules, have a plausible source for the
money, and tax was paid -- somewhere.
That goes beyond the law in government arbitrariness. But it leaves
most people safe: most especially the recipient of funds who can show
that the money came from a foreign probate or succession. (In fact,
one is protected, more or less, by bilateral tax treaties.)
The USA, at least, does not levy a tax on the recipient of gifts where
the gift itself is not taxable (i.e., the donor was not a US citizen
or domiciliar, and the funds were not US assets). Germany and Sweden,
for example, tax the donor or the donee, and at very high rates.
Britain taxes regular (not one-off) gifts as income, with specific
exceptions.
Wild, unsupported statements like yours serve no useful purpose.
May 1st 2004, 3:09 am
#6
Guest
Posts: n/a
Re: Tax on cash coming into USA
What about an inheritance from a passed away relative (mother/father) that
is sent to you through a wire transfer ? Is that taxable as part of your
income ?
Thanks
"Tam" <[email protected]> wrote in message
news:[email protected]...
> Andrew <[email protected]> wrote in message
news:<[email protected]>...
> > Cash imports of more than $1000 will be assumed to be proceeds from
> > the sale of illegal drugs and the money will be consfiscated!
> You made that up. I transmit funds regularly, in and out of the USA,
> in amounts from $10,000 to over $100,000. I keep the supporting
> documents. Never, ever, has their been a request for them.
> While sequestration laws (and money laundering laws) are vicious and
> arcane and give the prosecutors wide discretion, they are never
> applied if you follow the rules, have a plausible source for the
> money, and tax was paid -- somewhere.
> That goes beyond the law in government arbitrariness. But it leaves
> most people safe: most especially the recipient of funds who can show
> that the money came from a foreign probate or succession. (In fact,
> one is protected, more or less, by bilateral tax treaties.)
> The USA, at least, does not levy a tax on the recipient of gifts where
> the gift itself is not taxable (i.e., the donor was not a US citizen
> or domiciliar, and the funds were not US assets). Germany and Sweden,
> for example, tax the donor or the donee, and at very high rates.
> Britain taxes regular (not one-off) gifts as income, with specific
> exceptions.
> Wild, unsupported statements like yours serve no useful purpose.
is sent to you through a wire transfer ? Is that taxable as part of your
income ?
Thanks
"Tam" <[email protected]> wrote in message
news:[email protected]...
> Andrew <[email protected]> wrote in message
news:<[email protected]>...
> > Cash imports of more than $1000 will be assumed to be proceeds from
> > the sale of illegal drugs and the money will be consfiscated!
> You made that up. I transmit funds regularly, in and out of the USA,
> in amounts from $10,000 to over $100,000. I keep the supporting
> documents. Never, ever, has their been a request for them.
> While sequestration laws (and money laundering laws) are vicious and
> arcane and give the prosecutors wide discretion, they are never
> applied if you follow the rules, have a plausible source for the
> money, and tax was paid -- somewhere.
> That goes beyond the law in government arbitrariness. But it leaves
> most people safe: most especially the recipient of funds who can show
> that the money came from a foreign probate or succession. (In fact,
> one is protected, more or less, by bilateral tax treaties.)
> The USA, at least, does not levy a tax on the recipient of gifts where
> the gift itself is not taxable (i.e., the donor was not a US citizen
> or domiciliar, and the funds were not US assets). Germany and Sweden,
> for example, tax the donor or the donee, and at very high rates.
> Britain taxes regular (not one-off) gifts as income, with specific
> exceptions.
> Wild, unsupported statements like yours serve no useful purpose.
May 3rd 2004, 2:13 pm
#7
Guest
Posts: n/a
Re: Tax on cash coming into USA
"Rodo" <[email protected]> wrote in message news:<[email protected]>.. .
> What about an inheritance from a passed away relative (mother/father) that
> is sent to you through a wire transfer ? Is that taxable as part of your
> income ?
1. The method of transmission is irrelevant.
2. The burden is on you (as always) to prove the facts that make money
you have or spend non-taxable as income.
3. Gifts and bequests are almost never taxed as income in the US.
Exception: income of the estate attributed to the beneficiary as via
form K-1; most foreign trust income (and rolled-up income, now
principal); receipts from foreign (or for that matter US) pensions. An
estate-gift tax treaty (there aren't very many in force) may help.
4. There is a special case involving "transferee liability" where the
decedent's estate (as it is viewed in the US and other common-law
jurisdictions) is taxable in the US but because the US had no
jurisdiction and no tax return was filed, no tax was ever paid. The
liability is still for inheritance or gift tax though, not for income
tax.
5. Can't think of anything else offhand.
> What about an inheritance from a passed away relative (mother/father) that
> is sent to you through a wire transfer ? Is that taxable as part of your
> income ?
1. The method of transmission is irrelevant.
2. The burden is on you (as always) to prove the facts that make money
you have or spend non-taxable as income.
3. Gifts and bequests are almost never taxed as income in the US.
Exception: income of the estate attributed to the beneficiary as via
form K-1; most foreign trust income (and rolled-up income, now
principal); receipts from foreign (or for that matter US) pensions. An
estate-gift tax treaty (there aren't very many in force) may help.
4. There is a special case involving "transferee liability" where the
decedent's estate (as it is viewed in the US and other common-law
jurisdictions) is taxable in the US but because the US had no
jurisdiction and no tax return was filed, no tax was ever paid. The
liability is still for inheritance or gift tax though, not for income
tax.
5. Can't think of anything else offhand.
