My parents want to immigrate to US. I'm US citizen, but they are in process of becoming permanent residents. The total that needs to be brought is about half million of $. If they bring the money to US would they be taxable?
Thank you
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My parents want to immigrate to US. I'm US citizen, but they are in process of becoming permanent residents. The total that needs to be brought is about half million of $. If they bring the money to US would they be taxable?
Thank you
No, there are no transfer taxes in the United States, though Form 3520 may need to be submitted to document from WHERE the funds originated. That is an information only return.
No; you can bring as much as you want to from overseas. It will not be taxed. This includes cash, checks, bank transfers etc. If they wire transfer money from overseas to the their bank in US, their bank reports it to the Dept of Treasury as long as amount exceeds $10K just as info return. Financial institutions that process any transactions of $10K or greater are obligated to report the deposit to the Department of Treasury.However, the amount is lowered to $5K if the bank has reason to believe the deposits and profits were obtained illegally.
What will happen If I decide to purchase the house f
[QUOTE=KIS;3418242]What will happen If I decide to purchase the house for them but it will be under my name? Would it become interesting for IRS?
[QUOTE=KIS;3418243]No. I don't think so UNLESS they give you money, the gift , to you.The IRS regards it as your home Not theirs. If they give you the money.the gift, exceeding $13K for 2013, then they need to file form 709. For any gift in 2013 greater that $13K, she would be required to file a IRS form 709 tax return for the Gift Tax that may be due. In general, in placing your name on the title of your parents' house is not the same as buying it. You may want to remove your names from the deed of real estate and place their names on it. However, sometimes there are repercussions from this action that may have not been considered. As long as your parents plan to take over the property under your name , I guess they may consult a real estate attorney regarding the process and an accountant about how it will impact you/them now and in the future.Quote:
Originally Posted by KIS
[QUOTE=KIS;3418243]Then, it will be your primary residence NOT theirs UNLESS you already have your primary home. So, You can deduct certain expenses associated with the purchase of a new home; for example, even if they make mortgage payments (are legally liable for the mortgage)for the home, then, UNLESS their names are on the mortgage, they can’t deduct their mortgage payments they make on their US return.Quote:
Originally Posted by KIS
No. I don’t think so UNLESS they give you money, the gift , to you.The IRS regards it as your home Not theirs. If they give you the money.the gift, exceeding $13K for 2013, then they need to file form 709. For any gift in 2013 greater that $13K, she would be required to file a IRS form 709 tax return for the Gift Tax that may be due. In general, in placing your name on the title of your parents' house is not the same as buying it. You may want to remove your names from the deed of real estate and place their names on it. However, sometimes there are repercussions from this action that may have not been considered. As long as your parents plan to take over the property under your name , I guess they may consult a real estate attorney regarding the process and an accountant about how it will impact you/them now and in the future.
No. I don't have any residence yet. We just want to move my parents here from overseas. I do have a property myself under my name, but overseas, not in US. We want to sell everything there and bring money to the states. However, we want to purchase a house under my name only. What are the consequences of doing that?
There are no consequences except for gift tax issues mentioned earlier, and that does not apply if your parents are non-resident aliens.
That's what I was wondering about! If they become residents( immigrate) so they can't gift me the money without being taxed! What if I put the money overseas on account under my name and then wire them to US. Would I be taxed then?
That is an attempt to hidr assets, which is illegal.
It depends. Most of donees are NOT subject to gift taxes; the estate tax, gift tax and generation-skipping transfer tax exemptions have been indexed for inflation for the 2012 tax year such that each will be increased from $5 million to $5.12 million beginning on January 1, 2012. This means that UNLESS their gift exceeds $5.12 million, they do NOT have to pay gift tax to the IRS.Quote:
Originally Posted by KIS
As said, as long as it is gift money given to you by your parents overseas, you , as a done, are NOT subject to US tax on the gift ;however, you need to pay tax on interest generated rom the gift money in a bank overseas. ALSO, you, as a US person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year, then you must file IRS form TD F 90-22.1, info return. . please make a note of this~~~
Sorry double post~~
Thanks for help)))) why do you think I'd ask this question? My parents worked all life to buy house in US and live, and you say it's attempt to hide assets!! Y do they have 2pay taxes?
They probably will not have to pay taxes, but they MAY have to file a gift tax return.
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