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    Quizicle's Avatar
    Quizicle Posts: 1, Reputation: 1
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    #1

    Jul 10, 2012, 07:10 AM
    US tax due on funds received from overseas
    I have a foreign investment that I am planning to cash in and transfer back to the US to use as a down payment on a house. The value of the transfer is approx US$40,000. My main concern (like many of the other questions I've researched here) is the tax implication. If I bring these funds in with the express purpose of using these for a house purchase, are these funds considered "earnings"?
    Are there any State (Pennsylvania) or Federal taxes that I may need to consider come 2012 tax season?
    Should the funds be transferred into an escrow account, rather than my personal bank account?
    How does the current tax law view this type of transaction?
    APPRECIATE YOUR HELP AND GUIDANCE ON THIS.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 10, 2012, 07:15 AM
    There are NO transfer taxes when you move the money into the United States, so transfer the money to your own account.

    You WILL have to report the gain (or loss) on your tax return on Schedule D when you cash out the foreign investment.
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