[alexlinn70]

I know this topic has been posted numerous times but every case is slightly different and some of the responses are a bit confusing. Here goes my topic. I loaned over $100k to my wife’s family via wire transfers from US to a foreign country. I have all US wire receipt documents from my bank to support it. Her family has the money to repay and sitting in their account. I do not want to receive small installments over a long period and would prefer to receive a few large transfers within a couple years. I have no problem reporting it.
My questions are
1. Since this is my own money that I lent, would I need to pay any taxes or any fees (besides wire fees) bringing the money back?
2. In my opinion, it’s not a gift, inheritance, or business transaction, so what specific form would need to be filed? Reading the literature, it sounds like a 3520 or 8300 form does not apply.

Any help or advice is greatly appreciated.

[AtlantaTaxExpert]

Even though it is a transfer of your own money back to you, you stoll, In my opinion, have to report it to the IRS using Form 3520. Otherwise, how would the IRS know it was a loan repayment between family and not a payment for services rendered?

That said, Form 3520 is an information only return. Since yhe U.S. does not assess transfer taxes, no tax is due.

[alexlinn70]

Thanks very much for your reply. Much appreciated!

[AtlantaTaxExpert]

Glad to help!