Pharrya

Hello,

I'm sure that this subject has been done to death, but anyway...

In a few weeks I'm going to need to transfer some money from the UK to the US. It's basically a 'gift' that's been put in my UK bank account (from my mother, who's trying to divest in order to avoid inheritance tax in the UK).

So a few questions.

1) What do you think is the best way to do it???
2) As it's over $10,000 obviously I'll need to notify Uncle Sam, However if a UK bank Transfers money to the US, will either bank actually do the reporting to save me filling the form out?
3)The US tax side. Will I need to declare this money as foreign income?
4) anything else I nedd to bear in mind

Thanks

Pharrya

Pulaski

1) It's a tidy sum - just ask your bank to wire it (and don't forget to ask for a wholesale/ market exchange rate (not the tourist rate). You might save a few quid with an internet exchange service, but is it worth the risk?
2) The banks will do the reporting, if it applies - and it is mostly cash (banknotes and coins) that they have to report.
3) Not sure - ask a tax accountant when you do your annual return. It certainly isn't "income" (because it is a lump sum, i.e. non-recurring) but I guess that you may have to pay tax on the gift.
4) Nothing I can think of.