Transferring Sterling into US bank
#1
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Transferring Sterling into US bank
Could anyone please recommend the best way and the best financial company to use to transfer sterling into a US bank account while avoiding a ton of fees and also getting a good exchange rate? Is it best to transfer directly into my checking account? Someone on another thread had mentioned Transferwise. The only other company I know of is Fair FX but I havent done this for 15 years and the market has totally changed int hat time Im sure.
Also is there a US tax implication for me? Would I have to declare the money on my tax return? Its a gift and in the UK I believe these are tax free, no idea about here.
Thanks all I appreciate your input -as always.
Also is there a US tax implication for me? Would I have to declare the money on my tax return? Its a gift and in the UK I believe these are tax free, no idea about here.
Thanks all I appreciate your input -as always.
#2
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Joined: Aug 2013
Location: Athens GA
Posts: 2,134
Re: Transferring Sterling into US bank
Could anyone please recommend the best way and the best financial company to use to transfer sterling into a US bank account while avoiding a ton of fees and also getting a good exchange rate? Is it best to transfer directly into my checking account? Someone on another thread had mentioned Transferwise. The only other company I know of is Fair FX but I havent done this for 15 years and the market has totally changed int hat time Im sure.
Also is there a US tax implication for me? Would I have to declare the money on my tax return? Its a gift and in the UK I believe these are tax free, no idea about here.
Thanks all I appreciate your input -as always.
Also is there a US tax implication for me? Would I have to declare the money on my tax return? Its a gift and in the UK I believe these are tax free, no idea about here.
Thanks all I appreciate your input -as always.
There are many others, look here:
Best Money Transfer Services *� * Compare International Money Transfers
There is no tax implication for the actual transfer. Others will say how the gift, whether transferred or not, affects your taxes here.
#3
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Joined: Mar 2015
Posts: 40
Re: Transferring Sterling into US bank
The answer to this question depends on your domicile.
how long have you been living in the U.S. for and what is your residency status?
how long have you been living in the U.S. for and what is your residency status?
#4
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Re: Transferring Sterling into US bank
Thanks so much.
We've been here 15 years, currently GC and about to submit N400's.
We've been here 15 years, currently GC and about to submit N400's.
#5
Forum Regular
Joined: Mar 2015
Posts: 40
Re: Transferring Sterling into US bank
Ok in that case you would be a U.S. Domicile and can use the gift limits in the U.S. which is up to $14,000 per donee
You get this limit every year so you could send more next tax year also up to $14k to make sure you dont have to pay tax.
You get this limit every year so you could send more next tax year also up to $14k to make sure you dont have to pay tax.
#6
Re: Transferring Sterling into US bank
But it is the donor who pays US gift tax, not the recipient, so there is no tax to be paid in the US on gifts from overseas made by donors who are not subject to US taxes.
Last edited by Pulaski; Aug 16th 2017 at 8:01 pm.
#7
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Re: Transferring Sterling into US bank
Ok thank you I didn't realize that there was a limit. So after $14K any additional funds are liable to be counted as income on our tax return?
#9
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Joined: Mar 2015
Posts: 40
Re: Transferring Sterling into US bank
Apologies adnams i thought that you were the one giving the gift not receiving i should have got that from transferring sterling to a U.S. bank account.
if you are receiving the gift it is received you are the donee and it is recieved tax free as Pulaski mentioned.
if you are receiving the gift it is received you are the donee and it is recieved tax free as Pulaski mentioned.
#11
Re: Transferring Sterling into US bank
NP
BTW In the UK gifts can potential get caught up in inheritance tax if the donor dies within seven years of the gift. People think gifts are free of tax, but gifts are technically called "potentially exempt transfers"*, which only truly escape tax inheritance tax issues if the donor is still alive on the seventh anniversary of the gift.
* There are special rules for gifts on the occasion of marriage.
BTW In the UK gifts can potential get caught up in inheritance tax if the donor dies within seven years of the gift. People think gifts are free of tax, but gifts are technically called "potentially exempt transfers"*, which only truly escape tax inheritance tax issues if the donor is still alive on the seventh anniversary of the gift.
* There are special rules for gifts on the occasion of marriage.
#12
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Re: Transferring Sterling into US bank
And there is no limit on the amount of the $ gift? To still be tax free?
#13
Re: Transferring Sterling into US bank
Transferwise fast and easy for me to use. Sent money both ways quite a few times.
If the money is large give your bank the heads up.
If the money is large give your bank the heads up.
#15
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Re: Transferring Sterling into US bank
NP
BTW In the UK gifts can potential get caught up in inheritance tax if the donor dies within seven years of the gift. People think gifts are free of tax, but gifts are technically called "potentially exempt transfers"*, which only truly escape tax inheritance tax issues if the donor is still alive on the seventh anniversary of the gift.
* There are special rules for gifts on the occasion of marriage.
BTW In the UK gifts can potential get caught up in inheritance tax if the donor dies within seven years of the gift. People think gifts are free of tax, but gifts are technically called "potentially exempt transfers"*, which only truly escape tax inheritance tax issues if the donor is still alive on the seventh anniversary of the gift.
* There are special rules for gifts on the occasion of marriage.