Sunday, May 23, 2010

How much can I transfer from an international account w/o incurring a tax?

I've been reading up on the maximum amount allowable and I've found conflicting numbers ($10,000, $12,000 and $15,000). What's the maximum I can transfer state-side, or where can I look this information up?
How much can I transfer from an international account w/o incurring a tax?
Merely transferring funds has no tax implications directly. However if you have control over a foreign account or accounts that exceed $10,000 in total you are required to file Form TD F 90-22.1 each year to report those holdings. Here's a link: http://www.irs.gov/pub/irs-pdf/f90221.pd... There are no taxes due but there are severe penalties for failure to file a required report.





Additionally if you transfer funds from a foreign trust or estate in excess of about $13,000 (not sure on the amount, it has varied a bit lately) you must file a Form 3520 informational return. The IRS will determine if that income is taxable in the US and will advise you if any further reporting or taxes are required.
Reply:It's not how much you transfer, it's what you are getting it for that matters.

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