Transfering money from China to the USA

[clarejinjin]

Question:

I need to wire about $50,000 plus from China to the USA to show assets in the USA for our I-864 form. What is the best way? I know how to wire the money but what is the max amount I can wire each time and will I be taxed by the US Gov.?

Any ideas or experience?

Thanks

Steve

[dnoblett]

You may be able to transfer the funds without issues if you are transferring to yourself and are using same bank to send and then receive.

 

For example you have HSBC account in the USA, and you use HSBC to do the transfer.

[clarejinjin]

You may be able to transfer the funds without issues if you are transferring to yourself and are using same bank to send and then receive.

 

For example you have HSBC account in the USA, and you use HSBC to do the transfer.

Thanks for the come back!!!!!!!!!!!!!!!!!!!

I really need some information.

We will be transfering the $$ from China Construction Bank in China to Chase Bank in the USA. When we transfer the $$ we will be transfering from my wifes account in China to my account in the USA. Is there a limit that can be transfered at one time or can we transfer all the amount at once. Asking because of tax question. I read some where that the max amount that can be transfered at one time and NOT taxed is less that $10,000. Does anyone know any more about the tax liability????

Thanks

Steve

[2mike&jin]

Question:

I need to wire about $50,000 plus from China to the USA to show assets in the USA for our I-864 form. What is the best way? I know how to wire the money but what is the max amount I can wire each time and will I be taxed by the US Gov.?

Any ideas or experience?

Thanks

Steve

 

OK, from the history of your posts, I know you have filed your income tax each year, and you own a house in Xiamen. (We will be in our house in Xiamen [Hubin Bei Lu] - from 26 Sep - 30 Oct).

 

I'm going to go out on a limb and assume - you are talking about taking the money/profit from the sale of the house - and moving it back to the US? If that happens this year, which is sounds like it will....then the same rules apply.

 

As I remember - you are married(?). If you are, have you filed joint income tax together and or did you make a first year declaration to have her income treated like a US taxpayer? Probably not....but did you file "jointly" in 2009 so that your interviews et al would show married?

 

These are all background questions.....to get to the point of...she probably has her name only on the deed --- when she sells the house it will be her sale --- and the question is....is she subject to US taxation. If you filed in 2009 as joint - I suspect any income in 2010 will be treated as US income. If you filed jointly in 2009 and selected to be treated as 1st year resident - then without a doubt her 2009 and 2010 income is subject to taxation.

 

Ok, let's say she isn't subject to US taxation....no tax due!

 

If she is, has filed jointly with you, then the sale is treated just like a sale here in the US. Over 1 year, LTCG (Currently at 15%) and based on the numbers you posted in previous posts -- will remain the same - if current plans are put in place by the end of the year. [Other thought...this may be lower because of your combined income for 2010...i.e.lower % taxation...I haven't looked lately...I believe it was 5%...don't rember the income cutoff level]

 

Make sure you have all of the buy-sell documents to be able to prove the numbers just like any other US property sale.

 

Also - don't try to hide the sale...the I864 - will show this money - your SSN will be linked to the transfer - and it's not worth the pain/risk IMO. The patriot act has tightened the screws on wire transfers etc etc.

 

If I have made way too many assumptions and this is not the money from the sale of the house...we can try again if you want to air any other details. Best of Luck....

[2mike&jin]

You may be able to transfer the funds without issues if you are transferring to yourself and are using same bank to send and then receive.

 

For example you have HSBC account in the USA, and you use HSBC to do the transfer.

Thanks for the come back!!!!!!!!!!!!!!!!!!!

I really need some information.

We will be transfering the $$ from China Construction Bank in China to Chase Bank in the USA. When we transfer the $$ we will be transfering from my wifes account in China to my account in the USA. Is there a limit that can be transfered at one time or can we transfer all the amount at once. Asking because of tax question. I read some where that the max amount that can be transfered at one time and NOT taxed is less that $10,000. Does anyone know any more about the tax liability????

Thanks

Steve

 

 

Steve;

 

It's not the taxes that is the $10K limit....that limit is "how much cash you carry into the US", without Declaring it. You also can carry $50K cash into the US anytime you want to...you just have to declare it.

 

Mike

[shenzhen]

Question:

I need to wire about $50,000 plus from China to the USA to show assets in the USA for our I-864 form. What is the best way? I know how to wire the money but what is the max amount I can wire each time and will I be taxed by the US Gov.?

Any ideas or experience?

Thanks

Steve

 

OK, from the history of your posts, I know you have filed your income tax each year, and you own a house in Xiamen. (We will be in our house in Xiamen [Hubin Bei Lu] - from 26 Sep - 30 Oct).

 

I'm going to go out on a limb and assume - you are talking about taking the money/profit from the sale of the house - and moving it back to the US? If that happens this year, which is sounds like it will....then the same rules apply.

 

As I remember - you are married(?). If you are, have you filed joint income tax together and or did you make a first year declaration to have her income treated like a US taxpayer? Probably not....but did you file "jointly" in 2009 so that your interviews et al would show married?

 

These are all background questions.....to get to the point of...she probably has her name only on the deed --- when she sells the house it will be her sale --- and the question is....is she subject to US taxation. If you filed in 2009 as joint - I suspect any income in 2010 will be treated as US income. If you filed jointly in 2009 and selected to be treated as 1st year resident - then without a doubt her 2009 and 2010 income is subject to taxation.

 

Ok, let's say she isn't subject to US taxation....no tax due!

 

If she is, has filed jointly with you, then the sale is treated just like a sale here in the US. Over 1 year, LTCG (Currently at 15%) and based on the numbers you posted in previous posts -- will remain the same - if current plans are put in place by the end of the year. [Other thought...this may be lower because of your combined income for 2010...i.e.lower % taxation...I haven't looked lately...I believe it was 5%...don't rember the income cutoff level]

 

Make sure you have all of the buy-sell documents to be able to prove the numbers just like any other US property sale.

 

Also - don't try to hide the sale...the I864 - will show this money - your SSN will be linked to the transfer - and it's not worth the pain/risk IMO. The patriot act has tightened the screws on wire transfers etc etc.

 

If I have made way too many assumptions and this is not the money from the sale of the house...we can try again if you want to air any other details. Best of Luck....

I sent money over to China from my bank account (after tax and my own savings) to my wife's account. When we move back to the USA she will send the money back from her account (same amount as I sent to her) in China to our joint account in the USA. I have to pay taxes on this???

[Randy W]

I sent money over to China from my bank account (after tax and my own savings) to my wife's account. When we move back to the USA she will send the money back from her account (same amount as I sent to her) in China to our joint account in the USA. I have to pay taxes on this???

 

Only on INCOME, such as from the sale of a house. Mike is assuming that because of previous posts from the OP.

[dnoblett]

You may be able to transfer the funds without issues if you are transferring to yourself and are using same bank to send and then receive.

 

For example you have HSBC account in the USA, and you use HSBC to do the transfer.

Thanks for the come back!!!!!!!!!!!!!!!!!!!

I really need some information.

We will be transfering the $$ from China Construction Bank in China to Chase Bank in the USA. When we transfer the $$ we will be transfering from my wifes account in China to my account in the USA. Is there a limit that can be transfered at one time or can we transfer all the amount at once. Asking because of tax question. I read some where that the max amount that can be transfered at one time and NOT taxed is less that $10,000. Does anyone know any more about the tax liability????

Thanks

Steve

There is no tax liability at all it is HER money. Anyway yes any amount above $10K needs to be reported.

 

http://www.ehow.com/list_6038294_wire-tran...quirements.html

 

You will need to file form FIN-104 Currency Transaction Report http://www.irs.gov/pub/irs-pdf/ffc104.pdf

 

FinCEN Form 104 Currency Transaction Report (CTR): A CTR must be filed for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through or to a financial institution, which involves a transaction in currency of more than $10,000. Multiple currency transactions must be treated as a single transaction if the financial institution has knowledge that: (a) they are conducted by or on behalf of the same person; and, (b ) they result in cash received or disbursed by the financial institution of more than $10,000. (31 CFR 103.22)

 

http://www.irs.gov/businesses/small/articl...=148857,00.html

http://www.irs.gov/pub/irs-pdf/p4261.pdf

http://en.wikipedia.org/wiki/Bank_Secrecy_Act

[clarejinjin]

Question:

I need to wire about $50,000 plus from China to the USA to show assets in the USA for our I-864 form. What is the best way? I know how to wire the money but what is the max amount I can wire each time and will I be taxed by the US Gov.?

Any ideas or experience?

Thanks

Steve

 

OK, from the history of your posts, I know you have filed your income tax each year, and you own a house in Xiamen. (We will be in our house in Xiamen [Hubin Bei Lu] - from 26 Sep - 30 Oct).

 

I'm going to go out on a limb and assume - you are talking about taking the money/profit from the sale of the house - and moving it back to the US? If that happens this year, which is sounds like it will....then the same rules apply.

 

As I remember - you are married(?). If you are, have you filed joint income tax together and or did you make a first year declaration to have her income treated like a US taxpayer? Probably not....but did you file "jointly" in 2009 so that your interviews et al would show married?

 

These are all background questions.....to get to the point of...she probably has her name only on the deed --- when she sells the house it will be her sale --- and the question is....is she subject to US taxation. If you filed in 2009 as joint - I suspect any income in 2010 will be treated as US income. If you filed jointly in 2009 and selected to be treated as 1st year resident - then without a doubt her 2009 and 2010 income is subject to taxation.

 

Ok, let's say she isn't subject to US taxation....no tax due!

 

If she is, has filed jointly with you, then the sale is treated just like a sale here in the US. Over 1 year, LTCG (Currently at 15%) and based on the numbers you posted in previous posts -- will remain the same - if current plans are put in place by the end of the year. [Other thought...this may be lower because of your combined income for 2010...i.e.lower % taxation...I haven't looked lately...I believe it was 5%...don't rember the income cutoff level]

 

Make sure you have all of the buy-sell documents to be able to prove the numbers just like any other US property sale.

 

Also - don't try to hide the sale...the I864 - will show this money - your SSN will be linked to the transfer - and it's not worth the pain/risk IMO. The patriot act has tightened the screws on wire transfers etc etc.

 

If I have made way too many assumptions and this is not the money from the sale of the house...we can try again if you want to air any other details. Best of Luck....

Thanks!!!!

More details--

My wife is the owner of the appartment in Xiamen, I'm not on the title. We will be selling this appartment when we get permission to immigrate. Then we will want to transfer that money also. The $$ I'm wanting to transfer to the USA now is from our savings.

We filed USA tax as joint for 2007 and 2008 but for 2009 I filed as single because I bought a home in the USA in 2009 and with the tax rebate of $8,000 my income was so low, negitive, that my tax accountant said there is no need to file joint.

thanks!!!

Steve

[shenzhen]

I sent money over to China from my bank account (after tax and my own savings) to my wife's account. When we move back to the USA she will send the money back from her account (same amount as I sent to her) in China to our joint account in the USA. I have to pay taxes on this???

 

Only on INCOME, such as from the sale of a house. Mike is assuming that because of previous posts from the OP.

That is what I thought but I wanted to clarify it. Also she made interest by investment this money so all of the interest money beyond the original amount we would declare as income since we file jointly.

 

I have another question about her account. The account is in her name only. She is not yet a LPR but we did file taxes jointly last year and she has a Taxpayer ID number. Do we have to declare this as a foreign accounts because the aggregate value of all accounts exceeds US $10,000 using Form TD F 90-22.1? The way I understand it is that I don't need to declare because I have no interest in the account (since it is not a joint one) and she does not need to declare because she is not a LPR of the US yet. Somehow this does not seem right though.

[clarejinjin]

You may be able to transfer the funds without issues if you are transferring to yourself and are using same bank to send and then receive.

 

For example you have HSBC account in the USA, and you use HSBC to do the transfer.

Thanks for the come back!!!!!!!!!!!!!!!!!!!

I really need some information.

We will be transfering the $$ from China Construction Bank in China to Chase Bank in the USA. When we transfer the $$ we will be transfering from my wifes account in China to my account in the USA. Is there a limit that can be transfered at one time or can we transfer all the amount at once. Asking because of tax question. I read some where that the max amount that can be transfered at one time and NOT taxed is less that $10,000. Does anyone know any more about the tax liability????

Thanks

Steve

 

 

Steve;

 

It's not the taxes that is the $10K limit....that limit is "how much cash you carry into the US", without Declaring it. You also can carry $50K cash into the US anytime you want to...you just have to declare it.

 

Mike

Mike:

Let me rewrite the question.

My wife or another Chinese person wants to wire about $50,000 USD to my account, only my name is on the account, in the USA. What tax liability do I have receiving that money.

Steve

[2mike&jin]

You may be able to transfer the funds without issues if you are transferring to yourself and are using same bank to send and then receive.

 

For example you have HSBC account in the USA, and you use HSBC to do the transfer.

Thanks for the come back!!!!!!!!!!!!!!!!!!!

I really need some information.

We will be transfering the $$ from China Construction Bank in China to Chase Bank in the USA. When we transfer the $$ we will be transfering from my wifes account in China to my account in the USA. Is there a limit that can be transfered at one time or can we transfer all the amount at once. Asking because of tax question. I read some where that the max amount that can be transfered at one time and NOT taxed is less that $10,000. Does anyone know any more about the tax liability????

Thanks

Steve

 

 

Steve;

 

It's not the taxes that is the $10K limit....that limit is "how much cash you carry into the US", without Declaring it. You also can carry $50K cash into the US anytime you want to...you just have to declare it.

 

Mike

Mike:

Let me rewrite the question.

My wife or another Chinese person wants to wire about $50,000 USD to my account, only my name is on the account, in the USA. What tax liability do I have receiving that money.

Steve

 

NONE, as you have layed out the scenario's, the house and the return of savings to the US.

 

Also, because you didn't file as joint on your income taxes - and ostensibly NEVER filed a first year election - interest or profits that she makes from the sale will not be taxed either. Make sure that the first year you file taxes together - if it is for year 2010 and you sell the house in 2010 - YOU DON't make a first year election for her to be treated as a USC for tax purposes.

 

Just a note for all....it has to do with Gifts and taxes. Generally a person or (mulitple persons) can give up to $13,000.00 each year to anyone they want and there are NO taxes in the US. If a USC gives more than $13,000 to an individual - then the USC must pay whatever gift taxes are due for the money. I.e., if I give Dnoblett $1M, just for grins -- I must pay the tax on the money....not the receiver. Ergo - the issue with dieing - and giving your money to your kids. There are exclusions - but if you have alot of money -- the govenment siphons off what they want. This is also the reason why people set up trusts.

 

One last thing - as long as your spouse is a non USC, regardless of her tax treatment, you can gift her $133,000.00 (changes each year) without any tax due. This is a nice item since congress took away the marriage protection if a spouse dies while the other is a non-USC.