[msliboo]

Ok, so I have an account in germany that has over 10k in euros in it. I purchased my grandfathers house from my mother when my grandfather passed away. All bills have been paid and I would like to transfer the rest to my usa bank account. Now my question is if I bring the whole amount over to the us, will I have to declare it number 1? Will I, and how much taxes will I have to pay? If you know what forms I have to fill out can you point me in the right direction? Any information would be appreciated.

Thanks

[wnhough]

QUOTE," i have an account in germany that has over 10k in euros in it.'-----Assume that you, as a US citizen or resident alien (either under the US Tax Code or US INS Rules),if you have a financial interest in or signature authority or other authority over any financial account in Germany, and if the aggregate value of your personal bank account in Germany exceeds $10,000 at any time during the calendar year, then must file FORM TD F 90-22.1 with the IRS. This means that assume that the balance inyour account in July was $4,000 and in September, the balance was $120,500, then youkmus tfile the form;$10,500 in September>$10,000. REMEMBER;" Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties or both. If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late. No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause. Keep copies of what you send for your records."

"Now my question is if I bring the whole amount over to the us, will I have to declare it number 1? If you know what forms I have to fill out can you point me in the right direction? "----It depends on the amount of the money coming into your bank account in the US from Germany via wire transfer. If the amount exceeds $100,000, then you must file the FORM 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, just for info. return puirposes.
In general, if the amount of money coming into the US from abroad via wire transfer( into your bank account in US) exceeds $10,000, then your bank will report the amount to the IRS( US Treaury Dpt).That doesn't mean to pay any form of taxes on the money transfered into the US from overseas.Federal law requires that all banks report any cash deposits made in excess of $10,000 in the hopes of discouraging money laundering, rather than tax evasion. "wires" from abroad require the same information.


"Will I, and how much taxes will I have to pay?"----If it is a gift for you from your relative in Germany, then you do not pay any tax on it to the IRS.However, if it is revenue from capital gain( though after paying CG tax to taxing authority in Germany), you still need to pay CG tax to your State Government. Contact the dept. of revenue of your State Government for the State level CG tax info.




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[msliboo]

For example lets say you take out a loan for 35k euros, you buy a house
Then sell the house for 70k euros, the remaining funds can they be transferred to
A usa bank account without having to pay anything in the usa?

Thanks

[AtlantaTaxExpert]

Not on the transfer itself, but you MAY have to pay capital gains tax on the $35K Euro in profit made on the sale.

[msliboo]

OK, would you know how much that is for capital gains tax?
And would I have to pay it in germany, or the usa?
Thanks

[msliboo]

OK so I have to pay capital gains taxes... ok, I get that part but where here in the usa, or in germany where the money is.
Also what rates would I be looking at?
Thanks

[wnhough]

QUOTE," Also what rates would i be looking at?" ---- Contact the dept. of revenue of your State Government for the State level CG tax info.

[msliboo]

So if the house was given to me. I took out a loan on the house to gift a relative a share, then sold it and after paying off the loan then remainder of the money is what I am talking about. I know about capital gains, but the situation is not like I bought it for a profit, the house was given to me and after paying everything off the remainder is what I want to bring over.

Thanks

[wnhough]

QUOTE," but the situation is not like i bought it for a profit, the house was given to me and after paying everything off the remainder is what i want to bring over."--- Bottomline is that once, the amount of money coming into the US from Germany via wire transfer( into your bank account) exceeds $10,000 , then your bank will report the amount to the IRS( US Treaury Dpt).That doesn't mean to pay any form of taxes on the money transferred into the US from overseas.Federal law requires that all banks report any cash deposits made in excess of $10,000 in the hopes of discouraging money laundering, rather than tax evasion. "wires" from abroad require the same information.Unless the money is earned revenue( but is a gift), there'd be no taxes on it!!