Transferring money from UK to USA
#1
Just Joined
Thread Starter
Joined: Mar 2007
Posts: 24
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
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
#2
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.
#3
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.
http://en.wikipedia.org/wiki/Currenc...saction_report
more in depth here:
http://www.complianceheadquarters.co...Crimes101.aspx
#4
Re: 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
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
#5
BE Forum Addict
Joined: Mar 2007
Posts: 4,059
Re: 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.
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.
#6
Account Closed
Joined: Jul 2005
Posts: 15,019
Re: Transferring money from UK to USA
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?
#7
Just Joined
Thread Starter
Joined: Mar 2007
Posts: 24
Re: Transferring money from UK to USA
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?
#8
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.
#9
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
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%?
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%?
#10
Homebody
Joined: Jan 2005
Location: HOME
Posts: 23,174
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%?
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%?
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.
#11
Just Joined
Thread Starter
Joined: Mar 2007
Posts: 24
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%?
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%?
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.