Fr Chuck gas it right, as there are no transfer taxes in the United States.
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Fr Chuck gas it right, as there are no transfer taxes in the United States.
What if I just bring the $22k with me on the plane via travelers check and give it to her after we marry for the down payment? I'll declare it on the flight and say that it will be used for a wedding/ring/honeymoon. Any problems there? Then I wouldn't have to worry about US Capitol gain tax, right?
... as the apartment will be in her name only.Quote:
Originally Posted by Rebbe17
The capital gain will still be an issue, because (I assume) you will filing jointly when and if you sell the apartment.
Would it be better to keep filing single until after we sell the property? Is that even an option? It seems that it will be complicated filing jointly internationally.Quote:
Originally Posted by AtlantaTaxExpert
Once you are married, you can file SINGLE only if you are separated for the last six months of the calendar year.
Otherwise, you will file Married Filing Jointly or Married Filing Separately.
Is there a clear cut, better option between the two ways of filing married? It seems that "married filing separately" would be easier internationally.Quote:
Originally Posted by AtlantaTaxExpert
Married Filing Separately IS clearly the easier way to file, but filing jointly offers many advantages, especially if the wife does NOT work or otherwise have any world-wide income that must be declared.
She will definitely have income from China as she has a good job in Shanghai...
I have no idea how filing married works. I've never been married.Quote:
Originally Posted by Rebbe17
Then I suggest that, when you finally are married and it comes time to file, you seek out a competent tax professional with experience filing for international couples.
Yes, I definitely will. Thank you for all of your help, I really appreciate it.Quote:
Originally Posted by AtlantaTaxExpert
So I guess I'm just going to take the $22k with me in form of travelers check and then give it to her to put in her account after we marry as opposed to calling it a gift or an investment. Then the remainder of the money will be used as a down payment on the purchase of an apartment that will be in her name. Sound good so far?
Yes, it sounds fine!
And I should declare that money at customs, correct? Just say that it'll be used for the wedding and stuff? Then, it'll be exempt from a gift tax?
Sorry, I'm asking so much. Just trying to cover everything.
I am NOT SURE if you need to declare the money at Chinese customs; I THINK so, but I am NOT an expert on such matters.
You might want to check with the USCIS about whether the Chinese require such declarations. and what, if any, taxes are charged.
Ok, I will. I'm pretty sure that I have to declare anything over $10k when leaving or entering the US, but didn't think there was any taxes on it because I'll be using it for a wedding/honeymoon and then won't be giving her any of it until after we marry. She says that there aren't any gift taxes in China yet.
There is a limit on how much CASH you can bring into China, so check with customs on that first. And don't expect China immigration inspection to care why, there is cash, if it is over a certain amount it will either not be allowed in, or a high fee paid.
So not the US customs, you have to worry about, with the Cash, ( they don't actually check you that close going out of the US) it is going into China that you will be subject to a very close check.
Well, I plan on declaring it at both custom checkpoints because it's over $10k, and as long as it doesn't exceed any Chinese limits. Also, I thought the reason for explaining the money was mainly for US tax purposes? Not having to pay the gift tax and such...
So, will USCIS have the answers about customs limitations in China?
If anyone would have the information about Chinese customs rules, it would be their U.S. counterparts, which is USCIS.
You need to file form 709by the date the federal income tax return is due;as long as you gave gifts to someone in 2012 / 2013, I guess, totalling more than $13K ,other than to your spouse, ($14K on or after January 1 , 2013),you must file Form 709.However, you won't have to pay taxes on this gift unless your lifetime giving exceeds $5.12 million as of 2012, or $5.14 mil for 2013 but the IRS requires you to report your giving using Form 709 at the same time you file your 1040. Current regulations require that all cash transfers of more than $3,000 be recorded by the wiring service and that all wires over $10K be reported to the Dept of Treasury by your bank in US.
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