Implications of moving money from UK to USA
Feb 11th 2008, 4:22 am
#1
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Joined: Feb 2008
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Implications of moving money from UK to USA
I moved to USA from UK 7 years ago and became a citizen last year. Approximately 12 years ago I lent my son (living in UK)100.000 British Pounds interest free to buy his first house.He will shortly be in a position to repay the loan. 100,000 pounds is about $195,000.If he sends it to me via electronic transfer to my US Bank what are the regulations regarding reporting to IRS?or any other body. Am I going to have to pay tax?. Are there any other issues you can see?
Feb 11th 2008, 4:37 am
#2
Joined: Mar 2003
Posts: 68,280
Re: Implications of moving money from UK to USA
I moved to USA from UK 7 years ago and became a citizen last year. Approximately 12 years ago I lent my son (living in UK)100.000 British Pounds interest free to buy his first house.He will shortly be in a position to repay the loan. 100,000 pounds is about $195,000.If he sends it to me via electronic transfer to my US Bank what are the regulations regarding reporting to IRS?or any other body. Am I going to have to pay tax?. Are there any other issues you can see?
See an acountant about taxes may be best with such a large amount
Feb 11th 2008, 12:17 pm
#3
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Location: Hong Kong, mostly.
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Re: Implications of moving money from UK to USA
The interest your son didn't pay is in some jurisdictions considered a 'gift' that he will need to pay taxes on, but as he is in the UK I think he would need someone over there to rule on that.
As for you, you might be able to claim the 'lost' interest on the loan as a gift to your son, upto the annual gift limits.
I slept through most of this stuff in law school so I'd really recommend finding an accountant and going over it with him.
As for you, you might be able to claim the 'lost' interest on the loan as a gift to your son, upto the annual gift limits.
I slept through most of this stuff in law school so I'd really recommend finding an accountant and going over it with him.
Feb 11th 2008, 4:20 pm
#4
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Re: Implications of moving money from UK to USA
Thanks for the response.
So you think I will be liable for some form of tax?
So you think I will be liable for some form of tax?
