Tax question
#1
Just Joined
Thread Starter
Joined: Mar 2019
Posts: 3
Tax question
Apologies if this has been asked before. I have been browsing the forum and can not find a thread similar to my situation.
Me and my spouse are currently going through a CR1 (2 months in). So in terms of buying a house in USA my dad here in UK is helping me. He’s selling his house and he’s giving half to me. What is the best way of taking this money to the USA to use as a deposit on property? I could just transfer it using a company I know but would it incur any tax?
I already have a bank account set up under my name in USA if this helps.
Thank you for any help
Me and my spouse are currently going through a CR1 (2 months in). So in terms of buying a house in USA my dad here in UK is helping me. He’s selling his house and he’s giving half to me. What is the best way of taking this money to the USA to use as a deposit on property? I could just transfer it using a company I know but would it incur any tax?
I already have a bank account set up under my name in USA if this helps.
Thank you for any help
#2
Re: Tax question
No, no tax.
Some here use a company called Transferwise, or similar.
Or you can arrange a wire from your bank.
Welcome.
Where're you buying?
Some here use a company called Transferwise, or similar.
Or you can arrange a wire from your bank.
Welcome.
Where're you buying?
#3
Re: Tax question
There is no tax in the US on cash gifts received, nor on the transfer of funds from outside the US.
If the wire exceeds $10,000 it will be reported by the receiving bank to FinCEN, but that is absolutely nothing to be concerned about, and indeed trying to break up the funds into multiple smaller transfers to try to avoid reporting can have different reporting consequences that are a whole lot uglier, and you should really want to avoid!
The gift from your father will be a "Potentially Exempt Transfer" (PET) in the UK for inheritance tax purposes, and so may have an impact on inheritance tax if your father doesn't live for a further seven years from the date of the gift, but that would impact the estate (in the UK) not you and the gift you received.
If the wire exceeds $10,000 it will be reported by the receiving bank to FinCEN, but that is absolutely nothing to be concerned about, and indeed trying to break up the funds into multiple smaller transfers to try to avoid reporting can have different reporting consequences that are a whole lot uglier, and you should really want to avoid!
The gift from your father will be a "Potentially Exempt Transfer" (PET) in the UK for inheritance tax purposes, and so may have an impact on inheritance tax if your father doesn't live for a further seven years from the date of the gift, but that would impact the estate (in the UK) not you and the gift you received.
Last edited by Pulaski; Mar 26th 2019 at 4:21 pm.
#4
Just Joined
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Joined: Mar 2019
Posts: 3
Re: Tax question
Thank you Pulaski! I’m pretty sure we could get that sorted when we sell the house here right? Is it something a solicitor will do once my dad receives the cheque for the sale?
Hotscot - I am moving to California! Can’t wait
Hotscot - I am moving to California! Can’t wait
#5
Re: Tax question
You're welcome!
And yes, I would either ask the solicitor acting for your father, or speak to an accountant about it. The PET issue not a big deal, just something to be aware of.
#6
Just Joined
Thread Starter
Joined: Mar 2019
Posts: 3
Re: Tax question
Im looking forward to moving to USA to be with my wife. It’s so difficult to be away from each other. Just more studying and more exams and time and all will be good!
Thanks for your help mate!
#7
Re: Tax question
.... Im guessing it’s a way to prove the money isn’t coming from any illegal means? So if anyone asks I can show them the PET paperwork lol. That makes sense. Thank you!
Im looking forward to moving to USA to be with my wife. It’s so difficult to be away from each other. Just more studying and more exams and time and all will be good!
Thanks for your help mate!
Im looking forward to moving to USA to be with my wife. It’s so difficult to be away from each other. Just more studying and more exams and time and all will be good!
Thanks for your help mate!
#8
Re: Tax question
Good point. When transferring large amounts the bank often uses an intermediary service or dept that are on the look out for fraudulent activity and can acept or decline the transfer seemingly on a whim, and not even provide an explanation.
Asbal91. Can you say where in California? It's a big place and generally property prices areinsane very high where it's worth living.
Many of us are here in CA if you'd like to take advantage of some local knowledge.
If you feel like a general blether check out Trailer Park.
Cheers.
Asbal91. Can you say where in California? It's a big place and generally property prices are
Many of us are here in CA if you'd like to take advantage of some local knowledge.
If you feel like a general blether check out Trailer Park.
Cheers.
#9
Forum Regular
Joined: Jul 2018
Location: California
Posts: 254
Re: Tax question
As has been mentioned there's no tax, but if the gift is over $100,000 you may need to report it on form 3520.
#10
Re: Tax question
And while it is certainly possible for a wire to be rejected I doubt that is likely, unless for something like the wire not containing enough info to find the intended beneficiary's account, exactly like an incompletely addressed envelope being returned by the Post Office. …. But it is certainly possible that the receiving bank, or even intermediary bank, might flag the wire as being "suspicious", and that is why the Memo field on the wire instruction is so important, as that is the primary way for the remitter to record the source of funds and purpose of the wire.
#11
Re: Tax question
Or dept. as mentioned.
I've had my issues recently when sending large amounts to my European suppliers. (Apparently there's a certain threshold that triggers this, at least with my bank.)
Details haven't changed in 5 years, been doing wires quarterly in that time.
When I go to the bank, for the amounts I do, they have to go through some other entity/dept to get a code. Perhaps you know more about that part?
I had recent 'issues' for no discernible reason and no good explanation. All fine now but apparently 'someone' was overzealous in determining if I was 'comfortable sending a wire'.
And my default details in the system are no different than they were five years ago.
Seems all arbitrary depending on the person on the phone.
PM if you really want the details but nothing major to add.
I've had my issues recently when sending large amounts to my European suppliers. (Apparently there's a certain threshold that triggers this, at least with my bank.)
Details haven't changed in 5 years, been doing wires quarterly in that time.
When I go to the bank, for the amounts I do, they have to go through some other entity/dept to get a code. Perhaps you know more about that part?
I had recent 'issues' for no discernible reason and no good explanation. All fine now but apparently 'someone' was overzealous in determining if I was 'comfortable sending a wire'.
And my default details in the system are no different than they were five years ago.
Seems all arbitrary depending on the person on the phone.
PM if you really want the details but nothing major to add.
Last edited by Hotscot; Mar 26th 2019 at 9:05 pm.
#13
Forum Regular
Joined: Jan 2017
Location: Nottingham UK to Boston MA to Orlando FL
Posts: 185
Re: Tax question
Just a note from my similar experience but I called and notified BoA on the advice of this forum to expect a large sum to arrive in my account from abroad and they told me there was no need to tell them in advance.
It certainly wouldn't hurt if you did, but I don't think it's necessary.
It certainly wouldn't hurt if you did, but I don't think it's necessary.
#14
Re: Tax question
Just a note from my similar experience but I called and notified BoA on the advice of this forum to expect a large sum to arrive in my account from abroad and they told me there was no need to tell them in advance.
It certainly wouldn't hurt if you did, but I don't think it's necessary.
It certainly wouldn't hurt if you did, but I don't think it's necessary.