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Moving large deposits into my US bank account.

Moving large deposits into my US bank account.

Old May 29th 2018, 4:07 pm
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Default Moving large deposits into my US bank account.

Its my understanding that moving large deposits into a US bank account can be troublesome. I have 2x $5000 checks that I need to deposit into my BOA core checking account from my parents US bank account. What are the tax implications? I've read that a $10,000 deposit has to be reported by the bank to the IRS. If you deposit less in what time frame doe the 10k ammount cover(per month,year?) And if its 2 $5000 do I just report this on my end of year tax returns? I've moved large amounts of cash between UK bank accounts without incident or cost.

Many thanks in advance.
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Old May 29th 2018, 4:21 pm
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Default Re: Moving large deposits into my US bank account.

Originally Posted by AndyMan74 View Post
Its my understanding that moving large deposits into a US bank account can be troublesome. I have 2x $5000 checks that I need to deposit into my BOA core checking account from my parents US bank account. What are the tax implications? I've read that a $10,000 deposit has to be reported by the bank to the IRS. If you deposit less in what time frame doe the 10k ammount cover(per month,year?) And if its 2 $5000 do I just report this on my end of year tax returns? I've moved large amounts of cash between UK bank accounts without incident or cost.

Many thanks in advance.
You are correct that sums over $10k are reported. That is done by the bank and is not troublesome in any way (assuming the funds are legit.!!). The reports are to the Financial Crimes Enforcement Network (FinCen). It is part of the anti-money laundering procedures. Some suggest notifying your bank in advance as to the source of the funds, but I have never done so and have never had an issue. It is likely to be treated as more suspicious if you transfer several sums of just under $10k. Banks are required to report any suspicious activity.
There are no tax implications. You do not have to report it on your tax return. There may be gift implications for your parents, if it is indeed a gift.
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Old May 29th 2018, 4:35 pm
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Default Re: Moving large deposits into my US bank account.

Originally Posted by MidAtlantic View Post
You are correct that sums over $10k are reported. That is done by the bank and is not troublesome in any way (assuming the funds are legit.!!). The reports are to the Financial Crimes Enforcement Network (FinCen). It is part of the anti-money laundering procedures. Some suggest notifying your bank in advance as to the source of the funds, but I have never done so and have never had an issue. It is likely to be treated as more suspicious if you transfer several sums of just under $10k. Banks are required to report any suspicious activity.
There are no tax implications. You do not have to report it on your tax return. There may be gift implications for your parents, if it is indeed a gift.
Thank you for your swift reply. So i'm ok paying in 2x $5000 checks but maybe tell bank or pay them in together and that way they cant think i'm hiding anything (which i'm not)
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Old May 29th 2018, 5:53 pm
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Default Re: Moving large deposits into my US bank account.

As long as your money is legit, there are no issues at all and you dont need to declare anything to any one. We still live in a (somewhat) free country
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Old May 29th 2018, 6:16 pm
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Default Re: Moving large deposits into my US bank account.

If the money is deposited offshore it would simply be included by you in your FBAR & 8938 reporting (if required). This still has no tax consequences.
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Old May 30th 2018, 7:24 am
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Default Re: Moving large deposits into my US bank account.

Banks report suspicious transactions of all different amounts. If more than $10,000 in cash or check, they have a special form (8300), but if it is a transaction outside your normal pattern they will report that too (on a different form). If you have multiple payments from the same source > $10,000 in one calendar year that gets reported too.

https://www.encyclopedia.com/article...report-to-irs/

I would just deposit it all in one and not worry too much about it. I live overseas now and regularly send a significant amount back to the USA every month (mortgage, other payments, etc) and have probably had dozens of these forms filed about me for all I know. I mean seriously--you won't know.

The real problem people encounter (and have been prosecuted for) is called "Structuring"--making a series of small payments specifically to avoid triggering the reporting requirement. They even took down a former Speaker of the House of Representatives for structuring (he did 15 months in the nick). https://www.usatoday.com/story/news/...son/487193001/
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Old Jul 19th 2018, 4:12 pm
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Default Re: Moving large deposits into my US bank account.

is it structuring only within the US? ie from one US bank to another US bank under $10k? Planning on moving a large amount of money from the UK to the USA,

Many thanks in advance

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Old Jul 19th 2018, 5:07 pm
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Default Re: Moving large deposits into my US bank account.

Originally Posted by go2usa View Post
is it structuring only within the US? ie from one US bank to another US bank under $10k? Planning on moving a large amount of money from the UK to the USA,

Many thanks in advance

It also counts when moving it overseas. The week we left the USA for the UK I received a check for $14,000 from the VW Dealer in town for the car we had sold to them. I then walked into my son's bank with him, signed the back of the check and my son deposited it into his account explaining to the teller what we were doing. He then opened a Transferwise account and transferred the most he could with a new Transferwise account, $5K, to my account in the UK. Over the next couple of weeks he made 2 more transfers, $5k and $4k, so the full $14k had been sent to me.

A couple of weeks later he was contacted by the fraud department at his bank and asked to explain what he did as he appeared to be money structuring. When asked where the money came from he told them that if they looked at the deposited check they would see that it was from a large car dealer in town made out to his father for the sale of his car to them. The mistake he/we made was simply letting the teller know what we were doing, wrongly assuming that the information would be noted in the records.

Last edited by durham_lad; Jul 19th 2018 at 5:18 pm.
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Old Jul 19th 2018, 5:16 pm
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Default Re: Moving large deposits into my US bank account.

Originally Posted by AndyMan74 View Post
Its my understanding that moving large deposits into a US bank account can be troublesome. I have 2x $5000 checks that I need to deposit into my BOA core checking account from my parents US bank account. What are the tax implications? I've read that a $10,000 deposit has to be reported by the bank to the IRS. If you deposit less in what time frame doe the 10k ammount cover(per month,year?) And if its 2 $5000 do I just report this on my end of year tax returns? I've moved large amounts of cash between UK bank accounts without incident or cost.

Many thanks in advance.
Don't worry about it, it is the sender that needs to be concerned about reporting gifts if they exceed the annual limit of about $15k per person, and even that is just a form that sets the gifts against their lifetime tax-free gift limits. (Currently several million $ per person).

e.g. parents may gift up to $15k each to as many folks as they want so if they have 4 children they could give each child $25k each, total of $100k without any need to report or pay tax to the IRS
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Old Jul 21st 2018, 12:42 pm
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Default Re: Moving large deposits into my US bank account.

Originally Posted by durham_lad View Post

e.g. parents may gift up to $15k each to as many folks as they want so if they have 4 children they could give each child $25k each, total of $100k without any need to report or pay tax to the IRS
Is the limit 15k or 25k?
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Old Jul 21st 2018, 2:06 pm
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Default Re: Moving large deposits into my US bank account.

Originally Posted by Mercury39 View Post


Is the limit 15k or 25k?
The limit for 2018 is $15k per person. That means parents can gift in total $30k to each of their children per year without having to report the gifts to the IRS

https://www.forbes.com/sites/ashleae.../#106056384a4b

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