[tinabk001]

My uncle is tranferring money into my account temporarily on behalf of my dad since he lives abroad and doesn't have a personal bank account yet, will I have to pay taxes on this amount? It is about 45k. Thanks

[smoothy]

What country are you located. In the USA the government is going to know it's there, and most other countries as well well, international banking regulations require it. They just might consider it as income. Or worse... might view it as money laundering.

[excon]

Hello t:

If the money is NOT income or capital gains, you owe no INCOME or CAPITAL GAINS taxes.

You do NOT have to file a Cash Transaction Report (CTR), because you're not transferring CASH. You're transferring bits of data.

excon

[smoothy]

Your bank fills out those forms based on transaction size. Part of what they are required to do since anti-money laudering laws went into effect a number of years ago. And that applies to wire transferrs just as well as it does any other form of deposit. Cash, check or otherwise. It's the total amount... not what physical form it takes. Now at what precise point a tax obligation is triggered... that is something I'm not certain of.

[excon]

Hello again,

I don't know that smoothy and I disagree.

A currency transaction report (CTR) is a report that U.S. financial institutions are required to file for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to the financial institution which involves a transaction in currency of more than $10,000. Used in this context, currency means the coin and/or paper money of any country that is designated as legal tender by the country of issuance. Currency also includes U.S. silver certificates, U.S. notes, Federal Reserve notes and official foreign bank notes.

There certainly MAY be other reports banks have to make to the feds when money moves around, but it's not THIS ONE.

excon

[smoothy]

Hello again,

I don't know that smoothy and I disagree.

A currency transaction report (CTR) is a report that U.S. financial institutions are required to file for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to the financial institution which involves a transaction in currency of more than $10,000. Used in this context, currency means the coin and/or paper money of any country that is designated as legal tender by the country of issuance. Currency also includes U.S. silver certificates, U.S. notes, Federal Reserve notes and official foreign bank notes.

There certainly MAY be other reports banks have to make to the feds when money moves around, but it's not THIS ONE.

excon

We agree on this mostly... (I think we are talking about this from different angles however) but that reporting limit is far lower than $10,000 on deposits, reporting on funds (actually called Financial instruments I think) entering and leaving the country in excess of a certain amount is a separate issue and different papers than I was talking about. Those HE would have to make. And per those customs forms... failure to report can result fines that can be levied and seizure of those assets are possible. I've read them... just never moved enough money internationally to trigger them needing reported.

But a deposit into an account is a deposit. If it's a day, a month or a year in duration. And ANY deposit above X number of dollars is reported. Which form they file with the government depends on the actual amount AT THE TIME OF DEPOSIT. Its tiered and this is way above the top tier.

My wife is in Banking... and has been since before these took effect. And saw a Bank taken down for failing to make these reports consistently she once worked for. It was a local bank.. its assets were literally seized and literally sold off to another bank by the government after the fines were levied. And yeah, what they were doing was a reason she left.

Now I'm not a tax expert... so if he gets gigged on taxes here I'm not sure. But it will effect his average daily balance which will effect him assuming its high enough to trigger taxes due on interest. Not exactly what he was asking specifically as I saw it.

[smoothy]

Well, there ARE ways to keep it under the radar... but it will cost a small fortune from wire fees, exchange fees etc... in each direction. Not in his or his fathers best interest.

But he's not up to no good here (I don't believe anyway), and if he was I wouldn't tell him how anyway.