Ask Experts Questions for FREE Help !
Ask
    auryn36's Avatar
    auryn36 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 12, 2011, 12:16 PM
    Foreign money transfer for personal loan, are there taxes?
    I have a friend in Australia who is willing to personally loan me $14,000 USD in order to pay off a mortgage. We are going to have the money transferred directly into my bank account. Are there any taxes that we will have to pay, and do I have to declare this in any way? If he just gifted me the money would there be any difference?


    Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jun 29, 2011, 07:51 AM
    There is NO transfer tax due, and, because it is a LOAN, there is no income tax due at either the state or federal level.

    Form 3520 MAY have to be filed to explain the source of the money, but that is for information purposes only.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

- FBAR - Wire transfer to foreign account as loan [ 5 Answers ]

Hi I have a foreign account. In 2008 I lost my job and I had to borrow money from my friend to pay installments on my retirement home in the foreign country. Since the loan was payable in foreign country my friend wired the money to my foreign back account using which I paid my home. I need to...

Decuction on foreign bridge personal loan [ 1 Answers ]

I took on a loan on foreign currency from a foreign relative (personal) as a bridge-loan on my homestead. I will be paying it in full including acumulated interest and capital and I will likely incurr in a foreign exchange loss. a)- are the interests deductible? b-) is the currency exchange loss...

Foreign money transfer tax [ 2 Answers ]

My husband (US resident) and I (US citizen) want to transfer $50,000 dollars from our bank in Mexico to our bank account in the US. This money is from a business investment that we made 8 years ago in Mexico and has already been taxed in Mexico. Do we have to pay taxes on it again here in the US?

Foreign money transfer to USA [ 1 Answers ]

I have question about bring to the US: We are going to US and our family included 4 persons( Me, my wife and my 2 daughters which my daughters don't have separated passports and they are avaiable in my wife passport) So let me know we could bring $40,000 to the US for 4 persons or not? ...

Foreign money transfer [ 1 Answers ]

I am due to inherit a very large sum of money in England. What laws will I incur when transferring the money to the US?

View more questions Search