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Transferring money from UK to USA

Transferring money from UK to USA

Old Oct 2nd 2007, 3:24 pm
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Default Transferring money from UK to USA

Hey guys,
been living in houston for 8 months. Waiting on my I-485 to come through.
I have savings and family money that I am looking to transfer over in the next few months. If we say that $500K is the total figure, $100K of my money and $400K is money coming from my parents and I want to use it all to purchase a house.
I will have proof that tax has been paid in the UK and it is all from legitimate sources.

1. What potential tax implication do I have on such a sum of money?
2. What are the clever ways to transfer large sums of money?
- i have read about using xe.com
3. Will it help for my parents to be a name on the house?

Most of the discussion forums are talking about $10K limits and stuff. I am not looking to evade or trick the IRS, i just want to know the best way to do this.
Regards,
phil
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Old Oct 2nd 2007, 4:11 pm
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Default Re: Transferring money from UK to USA

any sum over $10K gets reported by the bank anyway, so your not missing out on anything there...and as you've mentioned, xe.com is the best way of getting best rates for transferring your money....no idea about the IRS and tax implications, but it depends on how you got the money I guess, capital gains and all that being the biggest pain in the arse to figure out I suppose.
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Old Oct 2nd 2007, 5:01 pm
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Default Re: Transferring money from UK to USA

Originally Posted by Bob View Post
any sum over $10K gets reported by the bank anyway, so your not missing out on anything there...and as you've mentioned, xe.com is the best way of getting best rates for transferring your money....no idea about the IRS and tax implications, but it depends on how you got the money I guess, capital gains and all that being the biggest pain in the arse to figure out I suppose.
I think it is only over $10,000 in CASH / CURRENCY or other negotiable instrument (such as a cashiers check). Wires are not reported, for example.

http://en.wikipedia.org/wiki/Currenc...saction_report

more in depth here:

http://www.complianceheadquarters.co...Crimes101.aspx
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Old Oct 2nd 2007, 5:07 pm
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Default Re: Transferring money from UK to USA

Originally Posted by thompo81 View Post
Hey guys,
been living in houston for 8 months. Waiting on my I-485 to come through.
I have savings and family money that I am looking to transfer over in the next few months. If we say that $500K is the total figure, $100K of my money and $400K is money coming from my parents and I want to use it all to purchase a house.
I will have proof that tax has been paid in the UK and it is all from legitimate sources.

1. What potential tax implication do I have on such a sum of money?
2. What are the clever ways to transfer large sums of money?
- i have read about using xe.com
3. Will it help for my parents to be a name on the house?

Most of the discussion forums are talking about $10K limits and stuff. I am not looking to evade or trick the IRS, i just want to know the best way to do this.
Regards,
phil

1. None
2. You heard right. But on this kind of sum, would be worth researching and shopping around.
3. No
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Old Oct 2nd 2007, 5:32 pm
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Default Re: Transferring money from UK to USA

Originally Posted by thompo81 View Post
Hey guys,
been living in houston for 8 months. Waiting on my I-485 to come through.
I have savings and family money that I am looking to transfer over in the next few months. If we say that $500K is the total figure, $100K of my money and $400K is money coming from my parents and I want to use it all to purchase a house.I will have proof that tax has been paid in the UK and it is all from legitimate sources.
Dan gave you a good answer about the money itself. I have a question, though. None of my business, really, but are you sure you need that much house? Half a million goes a long way in the Houston area, sounds like you're planning on some very posh digs. Have you considered a slightly less posh estate and letting the rest of the cash earn interest?
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Old Oct 2nd 2007, 5:36 pm
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Default Re: Transferring money from UK to USA

Originally Posted by Bill_S View Post
Dan gave you a good answer about the money itself. I have a question, though. None of my business, really, but are you sure you need that much house? Half a million goes a long way in the Houston area, sounds like you're planning on some very posh digs. Have you considered a slightly less posh estate and letting the rest of the cash earn interest?
not if you are concerned about location
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Old Oct 2nd 2007, 5:40 pm
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Default Re: Transferring money from UK to USA

Originally Posted by Bill_S View Post
Dan gave you a good answer about the money itself. I have a question, though. None of my business, really, but are you sure you need that much house? Half a million goes a long way in the Houston area, sounds like you're planning on some very posh digs. Have you considered a slightly less posh estate and letting the rest of the cash earn interest?
definitely a hypothetical amount of money. You are right about 1/2 million going a long way. The areas i like (especially those that aren't full of townhomes) are slightly more expensive. I wouldn't be as worried about the 1/2 million+ market segment as I would about other segments in houston.
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Old Oct 2nd 2007, 6:19 pm
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Default Re: Transferring money from UK to USA

While I know things are on the bubble now, what was the rate of housing price growth in Houston? Did it exceed the mortgage interest rate? I'd hate to see you put $500k into a house when you can get a mortgage (if) and invest the $500k elsewhere, especially if you can get a better rate in some mutual fund or something.
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Old Oct 2nd 2007, 7:53 pm
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Default Re: Transferring money from UK to USA

This sounds harsh but spending $500k on a house and buying it outright for cash is financial idiocy

that is a lot of capital. you can get a much better return than 4-4.5% that you get by not having a mortgage

Just put down 20% in order to get the best possible rate and invest the rest in something else...

with 400k left over you could buy a few multi-family rental properties and get them to pay off your home mortgage etc or as the other poster said, put in in some mutual funds with good track records

unless you have been listening to that moron dave ramsey where apparently "the paid off home mortgage has replaced the BMW as the status symbol of choice"

Could I pay off the mortgage on our modest house in nashville?

Yes, but why would I when my investments make 10-15%?
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Old Oct 2nd 2007, 8:00 pm
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Default Re: Transferring money from UK to USA

Originally Posted by BritGuyTN View Post
This sounds harsh but spending $500k on a house and buying it outright for cash is financial idiocy

that is a lot of capital. you can get a much better return than 4-4.5% that you get by not having a mortgage

Just put down 20% in order to get the best possible rate and invest the rest in something else...

with 400k left over you could buy a few multi-family rental properties and get them to pay off your home mortgage etc or as the other poster said, put in in some mutual funds with good track records

unless you have been listening to that moron dave ramsey where apparently "the paid off home mortgage has replaced the BMW as the status symbol of choice"

Could I pay off the mortgage on our modest house in nashville?

Yes, but why would I when my investments make 10-15%?
Not everyone is cut out to be a landlord. Renting out property is not a passive investment, and not everyone wants the hassle.

Also, I'm not sure I'd buy ANY property in the current economic climate.

Diversification should be a key aspect of everyone's financial investments. This, plus only invest in what you understand.
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Old Oct 2nd 2007, 10:17 pm
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Default Re: Transferring money from UK to USA

Originally Posted by BritGuyTN View Post
This sounds harsh but spending $500k on a house and buying it outright for cash is financial idiocy

that is a lot of capital. you can get a much better return than 4-4.5% that you get by not having a mortgage

Just put down 20% in order to get the best possible rate and invest the rest in something else...

with 400k left over you could buy a few multi-family rental properties and get them to pay off your home mortgage etc or as the other poster said, put in in some mutual funds with good track records

unless you have been listening to that moron dave ramsey where apparently "the paid off home mortgage has replaced the BMW as the status symbol of choice"

Could I pay off the mortgage on our modest house in nashville?

Yes, but why would I when my investments make 10-15%?
as i said i was only talking hypothetically.
I was more interested in benefitting from people's knowledge on potential tax liability, especially on inherited or gifted monies brought over from the UK, rather than your investment advice. buying a house with cash in the current climate would be stupid but that was not my question.
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