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Taxation on money transfer

Taxation on money transfer

Old Jan 23rd 2002, 8:41 pm
  #1  
fat
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I plan to send over the monies from my savings and my (hopefully) house sale for us to use as a deposit for a house for myself and my fiancee...

We are however worried about this transfer of funds from the UK to my fiancees US bank account atttracting taxation.

Would it be better to wait the 6 weeks till we are married or will we have to pay tax on the amount whatever...we are only talking a 5 figure amount...

Thanks
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Old Jan 23rd 2002, 9:02 pm
  #2  
Sean
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Any deposit 10,000 dollars or larger is automatically looked at by the irs, not sure
about the tax issues, but they will know about it that's for sure.

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Old Jan 23rd 2002, 9:37 pm
  #3  
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Sounds like we're in the same situation here however I will explain what I have done. My fiance who now lives in Florida but used to live in Minnesota called his Credit Union up in Minnesota to ask them what the situation would be for me to transfer funds from the UK to his account there. He explained our whole situation to them and was informed that it would be no problem to do a straight transfer and it would cost $10. They sent a form to me for signature so that we could change the accounts to joint names which I returned with a cheque for some of the amount that I wanted to transfer - this was all done without a hitch. When he called them he did ask about any implications with taxation and was told that it wouldn't be a problem as I'd obviously paid taxes in this country.

An example that I can also give you is that my sister who emigrated to the US 18 months ago did the same thing when her and her husband bought their house last year. However, the question was raised regarding tax from the broker whom they got the mortgage through. They gave the broker their accountants details so that it could be taken up with them and everything was fine - the accountant informed the broker/mortgage company that she didn't need to pay any tax on this money as she had paid it already in the UK - From what I can remember I think she just had to get a letter from her building society over here in the UK and provide some previous bank statements.

Hope this helps and good luck!
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Old Jan 23rd 2002, 10:07 pm
  #4  
Kay
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I asked the solicitor dealing with my house sale in the UK to transfer the proceeds
directly to my husbands USA account. This was done very easily and cheaply with no
taxation asked for or paid. I fretted about this for a long time but when it came
down to it there were no problems at all. I do know that if the house sale funds are
sent directly into your UK account that taxes will have to be paid.

I wish you all the best with the horrendous task of selling property in UK!

Kay (K3 in Oklahoma awaiting I-130 TSC)

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Old Jan 24th 2002, 3:10 am
  #5  
Skaternl
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The only thing I can think of is that the IRS wants some tax in case you get interest
over that amount of money. Though, I think, you only have to pay taxes on interest
amounts above $600 a year. So with a normal savings account you would get maybe 1.5%
annual interest. Which means you must have more then $40,000 on your savings account.

But I'm not sure, maybe an accounts could give more info on this......

I think there is also a posting somewhere in this NG that states that that person
paid like $100 to transfer 140,000 or something. Maybe you should search for it.

Good luck and let us know how it turns out,

Daniel

fat <[email protected]>
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Old Jan 24th 2002, 11:17 am
  #6  
Den Murray
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Kay

Why do you think that taxes will need to be paid if the net funds from your UK house
sale are transferred to your UK bank account? From a UK perspective, if the funds are
as a result of your primary residence, then there will be no capital gains tax to
pay. You will of course, have to pay tax on interest accrued on the funds once they
are in your bank account. Surely there would be no taxation moving this, or indeed
other savings, into the US?

Cheers

Den

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[usenetquote2]> > I plan to send over the monies from my savings and my (hopefully) house sale for[/usenetquote2]
[usenetquote2]> > us to use as a deposit for a house for myself and my fiancee...[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > We are however worried about this transfer of funds from the UK to my fiancees US[/usenetquote2]
[usenetquote2]> > bank account atttracting taxation.[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > Would it be better to wait the 6 weeks till we are married or will we have to pay[/usenetquote2]
[usenetquote2]> > tax on the amount whatever...we are only talking a 5 figure amount...[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > Thanks[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > --[/usenetquote2]

[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
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