Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Tax question , money into U.S

Tax question , money into U.S

Old Aug 27th 2014, 1:55 am
  #1  
Just Joined
Thread Starter
 
Joined: Jan 2013
Posts: 5
spowell is an unknown quantity at this point
Default Tax question , money into U.S

Guys,

I have been given by my parents in the UK a sum of money that i want to send to my BOA account here in Texas. My question is, am I liable to pay any tax on that money if I wire it to my BOA account .
If there is any official documentation anywhere I would love to be able to find it. I would hate to pay tax on money that was never in the U.S in the 1st place

thanks
spowell is offline  
Old Aug 27th 2014, 2:49 am
  #2  
Lost in BE Cyberspace
 
Michael's Avatar
 
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Michael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond repute
Default Re: Tax question , money into U.S

Originally Posted by spowell View Post
Guys,

I have been given by my parents in the UK a sum of money that i want to send to my BOA account here in Texas. My question is, am I liable to pay any tax on that money if I wire it to my BOA account .
If there is any official documentation anywhere I would love to be able to find it. I would hate to pay tax on money that was never in the U.S in the 1st place

thanks
There isn't a US gift tax on gifts received only on gifts given. Since I assume that you parents are UK citizens and are the givers of the gift, then there wouldn't be any US tax burden on them

However even if they were US citizens, there is an annual exclusion of $14,000 per year per person and any excess can be applied to the $5.34 million lifetime exclusion.

What is the Gift Tax and Who Pays It? - Wills & Estates

http://en.wikipedia.org/wiki/Gift_tax_in_the_United_States
Michael is offline  
Old Aug 27th 2014, 4:52 pm
  #3  
Just Joined
 
colin_w's Avatar
 
Joined: Aug 2014
Location: Boston Metro Area
Posts: 16
colin_w is an unknown quantity at this point
Lightbulb Re: Tax question , money into U.S

As I understand it, gift tax (if any) falls on the giver. The recipient doesn't owe tax.

If the giver is in the UK, and lives for seven years after the gift is given, the tax is zero. However, if the giver dies sooner, HMRC considers all or part to be an inheritance and their estate might have to pay inheritance tax:

HM Revenue & Customs: Inheritance Tax

If the giver dies within 3 years, 100% is taxable. 3 to 7 years is prorated.
colin_w is offline  
Old Sep 1st 2014, 12:50 pm
  #4  
BE Enthusiast
 
Joined: Nov 2012
Posts: 822
Cook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond repute
Default Re: Tax question , money into U.S

Don't forget if the number is big enough to report the money on the 2014 FBAR and Form 8938.
Cook_County is offline  
Old Sep 1st 2014, 1:29 pm
  #5  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 47,686
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Tax question , money into U.S

Originally Posted by spowell View Post
I have been given by my parents in the UK a sum of money that i want to send to my BOA account here in Texas. My question is, am I liable to pay any tax on that money if I wire it to my BOA account. ....
In addition to the advice given above, there is no tax due on money transferred into the US, ever.
Pulaski is online now  
Old Sep 1st 2014, 9:44 pm
  #6  
nun
BE Forum Addict
 
nun's Avatar
 
Joined: Aug 2004
Posts: 4,722
nun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond repute
Default Re: Tax question , money into U.S

Originally Posted by Cook_County View Post
Don't forget if the number is big enough to report the money on the 2014 FBAR and Form 8938.
You would only need to file those forms if you owned or had signature authority over foreign accounts above certain thresholds. If the gift was over $100k you would file 3520
nun is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.