How much can someone legally declare money from China at POE in USA

[Believer2]

My wife's mother passed away in China back in 2005. My wife's sister closed-out the the mother's savings account in China and the bank gave her $8000.00 in cash that was divided up between my wife and step-daughter to bring back home on the airplane to the USA. The grandmother was saving this money all her life for college for her gran-daughter. Also,my wife closed out her savings at the bank and any money that was left at her home.....not much. I know the legal limit is 10k to be declared at Customs POE in the USA. What are the rules for this....am I right. Also, since the money was made in China, do we have to claim this money on our US taxes ?? I am not sure if my wife and step-daughter filled out the declaration form properly?? We are trying to buy a house this year and would like to use this money to add to our savings here to make a small down-payment on the house.

What are some peoples' experinece with closing-out savings accounts in China for deciesed family members?

[dnoblett]

Money and Other Monetary Instruments

 

You may bring into or take out of the country, including by mail, as much money as you wish. However, if it is more than $10,000, you will need to report it to CBP. Ask the CBP officer for the Currency Reporting Form (FinCen 105). The penalties for non-compliance can be severe.

 

¡°Money¡± means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, traveler¡¯s checks in any form, money orders, and negotiable instruments or investment securities in bearer form.

http://www.cbp.gov/xp/cgov/travel/vacation/kbyg/money.xml

[2mike&jin]

My wife's mother passed away in China back in 2005. My wife's sister closed-out the the mother's savings account in China and the bank gave her $8000.00 in cash that was divided up between my wife and step-daughter to bring back home on the airplane to the USA. The grandmother was saving this money all her life for college for her gran-daughter. Also,my wife closed out her savings at the bank and any money that was left at her home.....not much. I know the legal limit is 10k to be declared at Customs POE in the USA. What are the rules for this....am I right. Also, since the money was made in China, do we have to claim this money on our US taxes ?? I am not sure if my wife and step-daughter filled out the declaration form properly?? We are trying to buy a house this year and would like to use this money to add to our savings here to make a small down-payment on the house.

What are some peoples' experinece with closing-out savings accounts in China for deciesed family members?

 

 

The $10,000 question has been answered. I'm not an accountant - warning!

 

Persons entering the US, as previously mentioned, can bring back any amount you want -- just declare it if it exceeds the limit. Now the practical side of things...if you bring back a couple of $100,000 USD you need to have a really good story - I.E. Source of funds. Most people would never do this -- just WIre the funds from one account to another and AVOID THE WHOLE ISSUE! NO DECLARATION, NO FORM, NO DISCUSSION. (taxes are a different issue)

 

Bank accounts in China. Bank accounts are usually - interest bearing - and the tax is usually collected by the bank - and forwarded to the government at the time that they post to the bank book. Usually (at Bank of China) the net amount is posted with an entry for the tax withheld. Interestingly enough, if you don't take your bank book in for awhile they don't post the interest in your bank book -- so you need to track this if you have a foreign bank account and can't get the book back in their hands. (Don't forget if you or your wife has a foreign account - that exceeds $10,000 USD, it must be reported on your tax forms - and a separate notification NLT than 30 June of the next year where, how much, etc. (The reason many people file separate income tax returns if one is a non US citizen, without a job, and foreigh bank accounts - so that the other spouse doesn't have to check the block saying they have an offshore account)

 

In the US, gifts of $12,000 can be given annually to each/every person - without tax from the giver or the recipient. If you exceed this amount the GIVER must pay tax to the US government. (Wife 12K Daughter 12K - total 24K) NO need to claim any of this money on US taxes. (I often given the legal limit to managers, family, etc for various reasons - IAW my company accountants guidance and in compliance with IRS rules-they don't have to claim as well).

 

NOTE FOR OTHERS WITH NON USC WIVES: Even though congress has taken away our ability to shield all estate taxes via our foreign wives they allow us to "gift them" up to $133K (I think this year-changes each year with escalation) without any estate/gift taxes (VICE THE $12K mentioned above). There was a separate alert and thread to the fact of non-usc spouse problems with estate taxes, I think last week here on CFL.

 

From what you've provided you have no issues and will not break any of these thresholds.

[Believer2]

Thanks for all the information.....Candle has been an indespensible source for immigration issues through the long and winding road in life.

If there are any accountants that do taxes, I would like to hear from them. Everybodys help has been great

Thanks

Believer2