1)

Both my parents are US Citizens as am I. They had property in DUBAI sold it and put the money into my DUBAI account. No capital gains as the Dubai property was bought cash and sold for almost the amount they got it for. Now I want to transfer the money into my US account as I want to purchase a house. The amount is over 100k dollars.
What is the best way to do this. What will I have to file and what tax may I owe if any.
Would it be better to have the money into there foreign account and transferred as gift or do my foreign account to US account.

2)
My grandmother in the UK who is Uk national not USA. Has gifted me some money also to help purchase a house in the States. What is the best way to get the money over, what to file, and if any tax's are due. Amount is less then 100k.

Thank You

1) YOU will owe NO taxes on this transaction, though you probably will need to report the wire transfer using Form 3520. Based on the description of the transaction above, your parents will owe little or no taxes on the transaction as well, but they MUST report it on their annual U.S. income tax return, probably on Schedule D.

Now, if you transfer the money and use it to by a house for yourself, then the $100K will be considered to be a gift from your parents to you. Since it exceeds the $13K annual gift maximum, a gift tax return from each of your parents will be required. Gift taxes may or may not be due, depending on whether they want to use any of their UNIFIED Estate Tax Credit.

2) Being a U.K. national, your grandmother has NO U.S. tax obligations, either income or gift. She needs to check with a U.K. tax consultant to determine if there are any U.K. taxes due. The best way to transfer the money is a bank-to-bank wire transfer. As the gift recipient, you have NO U.S. tax obligations, though you WILL need to report the transfer using Form 3520.

Thanks for the quick response. Was very helpful.
I can get the form on the IRS site correct. Should I file the form before or after or during tax?

Yes, the Form 3520 can be downloaded from www.irs.gov.

Read the instructions on how and when to submit the form.

Form 3520 is only required for gifts from nonresident aliens. Since your parents are U.S. citizens Form 3520 is not applicable. You don't need to file anything. Your parents need to file Form 709.

A U.S. person is required to file Form TD F 90-22.1 if at any time in the year there were $10,000 or more in foreign accounts. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

Hi, I am selling a house in England and will be paying capital gains tax in the uk for it. I want to trandssfer the money over here to buy a property in the USA. Will there be tax liabilities in the US as well ?

Thanks.

Not to my knowledge!

Hi, I have a follow-up question related to the one at the top of this thread.

If the same facts above were changed slightly, so that ONE of the parents was a US Citizen, and the other parent was not, and the gift was coming from an account owned jointly by them, would the transaction be recorded 100% on Form 709, 100% on Form 3520, or is there actually an opportunity to split the gift so that 50% could be from the US parent disclosed on Form 709 and the other 50% a foreign gift reported on 3520?

My guess is the married couple will be treated as US Citizens, even if one of them is not, but I would like to know for sure what the rules are in this scenario.

Thanks!

Hi. I am staying in the US as a J1 exchange scholar. I want to tranfer some money from my home country, greece and keep them in my account here in US. Am I going to be taxed for such thing? Is there an annual limit for money transferring, and if yes, what is it? Do I need to declare the money transfer?

There is NO taxes on money transfers by the United States.

Gave wife's parents (in Slovenia) money in 1993 t0 buy an apartment. Prior to her father's death, ownership was tranferred to my wife. With both parents deceased, we want to sell the apartment and transfer the money to a U.S. account. Are there any tax implications ofr us?

Yes. Since the apartment was gifted to your wife, the basis for the property is what THEY paid for it, NOT the stepped-up value of the apartment at the time of their death.

You will need to pay capital gains tax on the difference between what they paid for it and what you get for it when you sell it.