As it now looks more likely we are moving back to the US (currently in the UK), we will be selling our house.There's a fair old chunk of equity that we can use to make a downpayment on a house there, and use as living money until we both get jobs.

Question is, what the best way to get the money over there, or use that money (while its still here) to make a downpayment? Moving money shouldn't be too hard as we have UK and US bank accounts that we can transfer the money over to. We could use paypal as i have accounts linked to both banks, and could paypal money from me to...me. But are there cheaper ways?

I'm also curious as to what the IRS stand would be? We could transfer money over in $9,999 lumps, but i know they would eventually want something. They always seem to. Ironic really, that a country born out of protesting taxes is so damn tax greedy. But there you go.

Anyone who's bought a US house with UK money, or moved their savings over without getting robbed blind, please chime in.

Thanks.

we transfered our uk equity using online fx back in 2003 all they needed was an indication of how we came to get this money so they could put it on the tranfer document. The US bank would have informed the IRS but as it was a house sale then tax is not payable and we did not have to declare it on our tax form in the US.

Realllly? Thats good to know.

To save any problems leave it in an envelope in the first garbage bin on Malden service plaza I-87 northbound and let me know when you plan to do it ..... I will take care of it for you

You shouldn't be liable for US tax but you should declare it on your tax return.

Seems to be a lot of obsession on the board at the mo with UK house sales $10k limits and moving money.

In this instance, quite simply - sell your (primary residence) in the UK.
Pay of mortgage and collect entire proceeds.
Do not pay any tax to the UK, it is your primary residence so you are not liable.
Transfer Money to your US account in one lump (if you please) using XE trade. $10k "limit" is neither here nor there - if its over that, it'll get reported to the IRS, but so what? Who cares. Pay no tax in the US either.

Use money to buy house, etc.

Easy.

Sounds like a plan to me, Dan!

It's probably cheaper to move it across in one go. You should get a better exchange rate and only have to pay one transfer fee.

Or get a friend who is UK based to open a bank account here ..get him to send money into from your UK account ..get his bank card and drawout as needed ...

No fees if using XE Trade.....better exchange rates too...

Or even order cash for future delivery for better rate ..
http://www.travelmoneyservices.co.uk/

That pattern *should* get detected (but often isn't), and the fact that it's immediately below the automatic threshhold is itself suspicious activity which the person should report if they're clued up enough (they often aren't).

Do you have any sources/anecdotal evidence?

And besides, in this case, theres no point to doing it at all, being as he won't be paying tax.

This $10,000 thing comes up a lot.

There is nothing illegal about having > $10,000 come into the US in a wire from a bank in the UK to a bank in the US.

If you bring in more than $10,000 *** IN CASH **** --i.e. a big wad of bills, stuffed in envelopes or mattresses or whatever, then the business (i.e. sometimes a bank) is often required to obtain a form that is filed with the IRS for >$10,000 cash transactions. This is designed to prevent BMW dealers from selling cars to drug dealers for cash (really, that's pretty much why the law was written). Note: It is not illegal to bring in > $10,000 in cash, it just has to be reported. If there is no US tax owed on the money, then really the only thing you need to be worried about is a slight violation of your privacy rights. These forms are REPORTING forms--they are not necessarily TAX forms in which you owe money.

http://en.wikipedia.org/wiki/Bank_Secrecy_Act

HOWEVER, breaking up a large transaction into many smaller ones specifically to avoid the reporting requirement IS A CRIME! (yes, you can commit a crime trying to avoid something that is not a crime). It is called "structuring" and is illegal (though there have been some cases both ways).

As for the original question, first--don't use paypal, unless you want to pay 2.9% off the top as a fee. Just send a wire from your UK bank to the US one. If the rate blows (as it often does) than consider XE trade.

If you have more questions, contact your US bank and ask to talk to someone in their foreign currency department or their wire room, or ask to speak to someone in their legal department for more information.