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BeeBeeB · Aug 8, 2012, 02:47 PM

How can she then wire this money to our US bank account WITHOUT getting screwed by potential conversion requirements out of various percentages? (example: the bank might say that we only accept Ruble deposits, and thus charge a conversion fee to convert to Rubles. Then, once deposited, might take ANOTHER fee to convert back to Dollars for our US bank - on top of the wire fee.)

The $500,000 capital gains exclusion for married couples selling a primary residence applies here (we do not own, and never have owned any property in the US); we are not worried about owing the IRS anything because of this exclusion. It is mainly the potential for so many toll booths taking a percentage-based slice of the proceeds as it makes its way back to the US.

smoothy · Aug 8, 2012, 03:10 PM

Just so you know... not owning property in the USA doesn't automatically make that Russian property a primary residence.

It has to meet other legal requirements.

ebaines · Aug 9, 2012, 09:36 AM

Originally Posted by smoothy

Just so you know....not owning property in the USA doesn't automatically make that Russian property a primary residence.

It has to meet other legal requirements.

Correct - to qualify for the exclusion you must have lived in the home as your main residence for at least two of the previous five years.

BeeBeeB · Aug 9, 2012, 11:21 AM

After discussing with IRS, there should be no tax burden based on current law, based on our current income and the fact that we'll be paying taxes to Russia on the sale.

That's the least of my worries. The real problem is that cash is like a stateless person - banks are immediately suspicious of large amounts of cash and there are demands for documentation and justifications. This is my main issue - getting the money into a context from which it can be wired, without having to pay all sorts of fees and tolls for the privilege of making it transferable. All of this apparatus assumes you are guilty of something like money laundering or who knows what...

smoothy · Aug 9, 2012, 12:14 PM

And that is the case for very good reason... because that's exactly how the people who WERE doing something wrong were moving around lots of money. Its not a huge burden to deal with unless its frequent and /or you have anything to hide.

Be aware there are risks and costs involved no matter what way you choose. And the lest expensive have the highest risk were it could go bye-bye never to be seen again. Like carrying it yourself. You get robbed and its gone...

Those fees for nice safe and traceible bank transfers suddenly don't seem so bad then.

You can prove the source of the funds... so why worry.

BeeBeeB · Aug 13, 2012, 01:27 PM

Actually, I have learned a little more; the earlier questions I asked are now less relevant. Our pressing issue now is in simply getting the cash into a wireable state. A banker is buying her property. I don't yet know if the transaction will take place through HIS own bank, but I hope NOT, because that would allow for more potential thievery.

She is being told that an arrangement will be made so that these funds will be wireable to the US.

So now the worry is: how to keep her from being robbed (or worse) and how to make sure that the transfer is legitimate. This buyer is definitely a high roller and he is undoubtedly going to pursue other land parcels adjacent to ours in order to make a super-parcel for himself (he already has one to expand from). Such guys know how to play dirty, especially considering it is Russia.

Is this a question for the US Consulate? Can they possibly help in such circumstances?

excon · Aug 31, 2012, 06:09 AM

Originally Posted by BeeBeeB

This is my main issue - getting the money into a context from which it can be wired

Hello B:

Why don't you put the burden on the purchaser and REQUIRE than your wife be paid by CHECK?

excon

BeeBeeB · Sep 12, 2012, 07:18 AM

There is NO checking system in Russia. Real estate purchases are made in cash, usually in rubles.

excon · Sep 12, 2012, 07:23 AM

Originally Posted by BeeBeeB

There is NO checking system in Russia. Real estate purchases are made in cash, usually in rubles.

Hello again, B:

I ain't buying it.

excon

BeeBeeB · Sep 12, 2012, 09:58 AM

What, the assertion, or the property?

Doesn't matter anyway, already sold and no further issues.

smoothy · Sep 12, 2012, 12:47 PM

Originally Posted by BeeBeeB

What, the assertion, or the property?

Doesn't matter anyway, already sold and no further issues.

Click the purple AIN'T word in excon's post (its a link) and it takes you to banking information that disproves what you have claimed. You could even keep it all within one banks various branches.

Fr_Chuck · Sep 12, 2012, 05:58 PM

Agree, first why do you need to transfer all of it.

I have an account in a major US bank, guess what they are "connected" to a major bank here in Russia, I can transfer money anytime with no fees what so ever.

Also I can just go to the ATM here and draw out my US funds anytime I want.

So first why do you want to transfer the money ? Have you checked some of the larger banks.

Next conversion rates at banks are not set to cheat anyone, they are the best around. I use one major bank here in China and they give posted rates. It is when you deal with some of the transfer companies that they get you.