Bringing money out of China

[johnnybill45]

After my wife sells her house, she will bring the money into the U.S. Have any of you guys had experience with bringing in more than $10,000 US dollars? More than 10K, customs wants you to declare it. What happens if you declare it? Is it just another form to the IRS?

 

As a first time immigrant,does she have to pay tax?

 

Thx

 

John

[danswayne]

Why not bring in a lower amount and then have the rest wired by a bank??

[johnnybill45]

Maybe that's the best solution. Bring in a small amount, and wire the rest.

 

She'd need to open an account here once she gets here, or wire to my account. It's just I'm not sure yet what the ramifications (tax wise) would be. I'll probably stop at the Cathy Pacific bank tomorrow and ask them. Meanwhile, she can work on it from her end.

 

John

[danswayne]

Of course if you are going to visit China again in the next year or so sometimes american dollars can draw a little more interest than it can over here.

[frank1538]

Wire transfers of $10,000 or more to non commercial US bank accounts may also be a reportable transaction.

 

A buddy of mine brought back +$10,000 last year and filed the declaration form - so far no adverse consequences, not even an eyebrow raised at customs.

 

Paying taxes on her gain from the sale of the house may well turn on whether you are married at the end of the year in which she sold the house and if you decide to file a joint return with her. I'd consult a good tax advisor on this one, but generally, unless you decide to file a joint return, income that she earned before becoming a resident of the US is not taxable in the US.

[tywy_99]

you can bring as much money into the states as you want but anything over $10,000 you will have to declare it at customs and fill out customs form 4790. Nothing to it. Customs just wants to make sure you're not running money back and forth for the bad guys, or somthing.

 

on another note: leaving tomorrow to pick up my wife's things from the warhouse but first I have a 1300 appointment with the inspectors at NIA customs to pick up the clearance papers. No customs broker needed.

[keelec]

John,

 

Do you need the $10,000+ in the USA now?

 

Does your wife have family in China that she might want to help out in the future? Visit in the future?

 

If you don't need the money now, and she has several close family members, then you might want to setup a bank account in China for her with a "trustworthy" parent or relative cosigning.

 

You would be able to use that money for any needs that you might have in China. And, the money would be hers should something ever come between the two of you.

 

Of course, then you would also be able to bring the money into the USA a little at a time (of course, you will be asked about foreign investments on your taxes).

 

I know that Russia has very strict regulations about taking money out of the country. I think they limit each person to about $1500..... Does China have similar regulations?

 

----- Clifford -----

[yanhua]

1. Chinese customs allow 5,000 USD in cash per person when you go out of the country. You should report if the amount is over.

2. She can also apply for a debit Visa card in any of China's big banks. She can have one of her family member as the main card holder. She can use the card in the U.S too, for shopping and etc. She can also withdraw money from counters or ATMS but there is a service charge.

[tonyontherock]

As far as U.S. is concerned there should not be any implications, tax or otherwise, just have to declare it. If the money is legit, I would not worry about it.

As a non-resident there is no tax on capital gains. As a resident, sale of a house is exempt. Not sure if it applies to sale of a home in another country. Check out the code on the IRS website. If exempt, I believe there is a two year a house limit.

Even if taxable in the worst senario, 15% max rate on 10,000 minus basis, payment for the house, improvement costs etc probably won't even justify the legal cost of consultation.

I am more concerned about the Chinese side

[tonyontherock]

Talking about taxes. Does any one know why the heck they withhold so much from year end bonus than the rest of the year?

[Dean Hall]

Whats a bonus ?

[tonyontherock]

Whats a bonus ?

It is the thingy that shrinks every year even without contact with cold water. Even so, the IRS personnel seem that they can never get enough of it, especially at the rear end.

[tonyontherock]

Whats a bonus ?

It is the thingy that shrinks every year even without contact with cold water. Even so, the IRS personnel seem that they can never get enough of it, especially at the rear end.

woops, year end I mean.

[robhon]

Whats a bonus ?

It is the thingy that shrinks every year even without contact with cold water. Even so, the IRS personnel seem that they can never get enough of it, especially at the rear end.

woops, year end I mean.

If I understand your question, usually when people get an end-of-the-rear (er, year) bonus, on that paycheck your pay gets taxed in a higher tax bracket. Payroll systems will say, "If you made this much money every month then by the end of the year you should have to pay this much in taxes," and then deducts according to that.

 

It doesn't matter, though. You get that money back when you get your tax refund. If you file early in the year you'll quickly get it back. Or, if you want, to you can always just file a larger number of exemptions for that pay period only. But that's a bunch of paperwork.

[se_lang]

Talking about taxes. Does any one know why the heck they withhold so much from year end bonus than the rest of the year?

A bonus is taxed at about 48% or so it seems, maybe 38%, But a bonus is not calculated as normal pay it is a bonus not an income. I got a $7800 car allowence once after taxes it was about $4500 the excuse they gave me is you will get it back at tax time (ya after the IRS earns interest on it) gotta love or government, wasnt there a tea party about taxs once.