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Transferring Money

Transferring Money

Old Dec 1st 2017, 4:09 pm
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Default Transferring Money

Hi all,

I am in the K1 process pile and am starting to plan ahead.

I have a decent amount of money in my bank that I will want to take with me to America. My idea is that this will form part of a down payment on a house in a few years time in upstate New York.

Ideally I would want to wait until the exchange rates favour my lovely British pounds over the dollar.

Is there anything stopping me from leaving my money in a British bank (earning low interest)?

Thanks,
Paul
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Old Dec 1st 2017, 4:48 pm
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Default Re: Transferring Money

Originally Posted by paul_1985 View Post
Hi all,

I am in the K1 process pile and am starting to plan ahead.

I have a decent amount of money in my bank that I will want to take with me to America. My idea is that this will form part of a down payment on a house in a few years time in upstate New York.

Ideally I would want to wait until the exchange rates favour my lovely British pounds over the dollar.

Is there anything stopping me from leaving my money in a British bank (earning low interest)?

Thanks,
Paul
No nothing at all. Interest will have to be declared on your US 1040 tax return and you will probably have to complete an 8938 with your 1040 (depending on the sum involved and your tax filing status). You will also need to file on-line an FBAR. You can worry about this after you move. Welcome to the world of US tax!

This will give you an overview:

https://www.irs.gov/businesses/compa...r-requirements
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Old Dec 1st 2017, 4:51 pm
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Default Re: Transferring Money

Originally Posted by MidAtlantic View Post
No nothing at all. Interest will have to be declared on your US 1040 tax return and you will probably have to complete an 8938 with your 1040 (depending on the sum involved and your tax filing status). You will also need to file on-line an FBAR. You can worry about this after you move. Welcome to the world of US tax!

This will give you an overview:

https://www.irs.gov/businesses/compa...r-requirements
And all of this is relatively trivial to DIY. I did it.
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Old Dec 1st 2017, 5:57 pm
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Default Re: Transferring Money

Thanks for the info.

It’s c£80k - does that make a difference ?
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Old Dec 1st 2017, 6:03 pm
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Default Re: Transferring Money

Originally Posted by paul_1985 View Post
Thanks for the info.

It’s c£80k - does that make a difference ?
No, that only affects whether you need to complete Form 8938 when you do your taxes and that depends on your tax filing status and what other "foreign assets" (eg pensions) you may need to count.
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Old Jul 6th 2018, 12:23 am
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Default Re: Transferring Money

Not sure if this post fits the bill for this thread but didn't want to create another one just for a single question:
Q: I came to US in Dec 2017 as a British Citizen on K1 visa, at that time i couldn't open a bank account as i didn't have a social security number but now I do. My question is how much cash can I deposit in the US bank account if i open a new one? and will I be asked any questions and will I be taxed on it. The source of the money £ pounds that I converted to dollars when coming here.
Thanks
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Old Jul 6th 2018, 5:39 am
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Default Re: Transferring Money

Originally Posted by Kapan View Post
Not sure if this post fits the bill for this thread but didn't want to create another one just for a single question:
Q: I came to US in Dec 2017 as a British Citizen on K1 visa, at that time i couldn't open a bank account as i didn't have a social security number but now I do. My question is how much cash can I deposit in the US bank account if i open a new one? and will I be asked any questions and will I be taxed on it. The source of the money £ pounds that I converted to dollars when coming here.
Thanks
If the money is coming from a US source, you say it is already converted to $, there shouldn't be any questions at all. You can deposit whatever amount you want. The only question I would expect might be asked would be a general question as to your source of the money.
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Old Jul 6th 2018, 3:34 pm
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Default Re: Transferring Money

Originally Posted by paul_1985 View Post
Hi all,

I am in the K1 process pile and am starting to plan ahead.

I have a decent amount of money in my bank that I will want to take with me to America. My idea is that this will form part of a down payment on a house in a few years time in upstate New York.

Ideally I would want to wait until the exchange rates favour my lovely British pounds over the dollar.

Is there anything stopping me from leaving my money in a British bank (earning low interest)?

Thanks,
Paul
Like you say I would leave your lovely £'s in the UK for now as the exchange rate is quite low. It could creep up again to £1.42ish....maybe. If brexit goes through next year though I suspect the £ will tank and not recover for some years. I think Brexit may turn out well for people sending $ back to the UK.
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Old Jul 6th 2018, 6:39 pm
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Default Re: Transferring Money

Clarification , I brought with me some dollars in cash but wasn't able to open an account at that time so now I am wondering if the bank or IRS will ask anything if I deposit this bulk amount in one go (less than 10k)
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Old Jul 6th 2018, 6:42 pm
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Default Re: Transferring Money

Originally Posted by Kapan View Post
Clarification , I brought with me some dollars in cash but wasn't able to open an account at that time so now I am wondering if the bank or IRS will ask anything if I deposit this bulk amount in one go (less than 10k)
The bank might ask about the source of the funds and you seem to have an explanation to give to them.
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