Bringing money out of China

[tonyontherock]

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.

Thanks. I was hoping to use the money to pay for my grocery. I dread filing my taxes. Already got 5 exemptions which inlcudes my ex-in-laws and my ex. Humm, can I add all the girls that I went out with? I paid for the expenses.

[johnnybill45]

Thanks you guys. I think tonyontherock hit it right. According to the accountant that works where I work, there will be no tax ramifications. It's her money that she made in China, and won't be taxed again here.

 

You all brought up some good points, about getting out of China with it. She may have a bank wire it to our account once she opens an account or just gets her name on my account.

 

Yes, we need the money now. We would not dream of leaving it in China. Combined with my money, it will be part of our future down payment on a house. When you live in California, especially the bay area, you pay out the ying-yang for a house! So every little bit counts!

 

Thanks

 

John

[Robert S.]

$10,000 is just a little bit of a down payment? You should move here to Alabama where that would be the total down payment on your new custom built home!!!

[Orrin]

When we left China on Sept. 16, My wife had $5K in her wallet, and I had $10K in my boot. Neither of us were questioned about $$ when we left China through Macau, or when we entered the US in Seattle.

 

Because my wife was VERY nervous about carrying any more cash than that, we opened a credit card account with Bank of China about 2 weeks prior to our departure, and loaded it with a little over $10K. Fortunately, we haven't had to use the BOC Visa card much since we've been here, but it's comforting to know that we have that cash in reserve.

 

The BOC Visa card is accepted here by merchants and at ATM machines just the same as any Visa card issued by a domestic bank.

 

That's an approach you might want to try if your really nervous about carrying cash out of China.

[johnnybill45]

Many good comments. Thanks.

 

I wouldn't mind moving back to Tennessee, my home state. Perhaps I will some day. Houses there are about 1/3 of what they are here in California. But people here are so much more tolerate of people's differences.

 

I never said how much money she is bringing. It's significantly more than 10K. That is why wiring it to my bank is probably the safest. However, it requires government approval according to my wife. She will check it out, but she believes the government gets involved in any money transaction from China to the U.S. and must approve it first. Remember, China is still a communist country. When we are there, we may not see the little things that the government does, but this is one of them -- according to my bride.

 

Of course, our government does the same - it's called IRS. That's why whatever she claims on the Customs form is sent to the IRS.

 

Now about the bonus thread: If you don't like having your bonus taxed so much, start voting Liberterian! Their political platform is very practical. As long as Democrats and Republicans run the country, your hard earned money will get taxed "to the max" and will be going to other countries like Iraq to satisfy power hungry imperialists like President Bush. (That should ruffle a few feathers!)

 

John

[robhon]

Here's a thought. Leave the money in China! Just keep it there earning interest and use it as spending money when you travel there.

 

I've always thought that, essentially, when you bring money out of China to the USA you're taking a HUGE hit! It's worth a fraction of the value when turned into US currency. Hey, $10K and a small fortune is China. It's larger than most people's annual salary.

 

Think of it in reverse. How would you feel about taking $80K to another country to find out that it would only buy maybe $10K worth of goods and services?

[JerryL]

Not to mentioned that with the falling dollar, and the pressure on the Chinese government to value the yuan higher (not just political but just simple economics), the money may be worth more next year if left in yuan. I know quite a few people who are converting holdings FROM dollars to yuan...

 

Jerry

[keelec]

Not to mentioned that with the falling dollar, and the pressure on the Chinese government to value the yuan higher (not just political but just simple economics), the money may be worth more next year if left in yuan.  I know quite a few people who are converting holdings FROM dollars to yuan... 

 

Jerry

That might not be a bad idea.... As long as the exchange rate is still sliding.

 

I haven't looked at the Dollar-Yuan exchange rate lately, but a year ago I thought about purchasing Euros.... It would have returned about 20 or 30% in a year.

 

I know that the Ruble has been stable at 30 Rubles to the dollar for quite a while.

 

When talking to one of Irina's uncles I asked him what he thought about the last decade. His biggest complaint was that prior to the fall of the USSR, the exchange rate valuation was held at approximately 1 Ruble = 1 Dollar.

 

Extremely rapidly, it fell from the 1-1 ratio to 30-1. Of course, wages fell quite a bit too, but not all durable goods fell in values as much. Think of it, if you had $3000 or currency, it's buying power just became equivalent of $100. $30,000 is suddenly $1,000. Wages equivalent to $100 per day is suddenly $3 / day!!!!!!!

 

Not everything fell. Imported goods remained relatively high in cost. Housing is almost priced out of reach of most Russians.

 

Anyway, I can't imagine seeing the Ruble fall any further, I presume the same woudl be with the Yuan. Both countries would likely benefit from an increase of value of their currency vs the Yuan, even if it reduces the trade.

[Eric&Yuhui]

Not to mentioned that with the falling dollar, and the pressure on the Chinese government to value the yuan higher (not just political but just simple economics), the money may be worth more next year if left in yuan.  I know quite a few people who are converting holdings FROM dollars to yuan...  

 

Jerry

That might not be a bad idea.... As long as the exchange rate is still sliding.

 

I haven't looked at the Dollar-Yuan exchange rate lately, but a year ago I thought about purchasing Euros.... It would have returned about 20 or 30% in a year.

 

I know that the Ruble has been stable at 30 Rubles to the dollar for quite a while.

 

When talking to one of Irina's uncles I asked him what he thought about the last decade. His biggest complaint was that prior to the fall of the USSR, the exchange rate valuation was held at approximately 1 Ruble = 1 Dollar.

 

Extremely rapidly, it fell from the 1-1 ratio to 30-1. Of course, wages fell quite a bit too, but not all durable goods fell in values as much. Think of it, if you had $3000 or currency, it's buying power just became equivalent of $100. $30,000 is suddenly $1,000. Wages equivalent to $100 per day is suddenly $3 / day!!!!!!!

 

Not everything fell. Imported goods remained relatively high in cost. Housing is almost priced out of reach of most Russians.

 

Anyway, I can't imagine seeing the Ruble fall any further, I presume the same woudl be with the Yuan. Both countries would likely benefit from an increase of value of their currency vs the Yuan, even if it reduces the trade.

You don't have to.. It's pegged... 1 USD = 8.27 CNY

[robhon]

Yeah, but there's talk of UN-pegging it...

[tonado]

Does anyone has new update about bringing money out of China. My wife's parents will be coming in April.

[Cerberus]

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.

42610[/snapback]

Frank,

 

Last time I heard, all transfers to $4,999.99 were automaticly reported by all monetary institutions. I believe that this was done under the RICO act. That is why money laundering drug profits became such a big business.

 

Unfortunately, most of the funds are SOs have will been brought up under these guidelines, no matter whether the funds were legitimate or not.

 

I have used this type transaction before in the LA area. I was purchasing a legitimate business. If someone desires simply check with your local bank. They know about it! They are to required to report and maintain a log of these size transactions to establish a paper trail of monies movement. I included a specific webpage. Our SO's fall under the suspicious activitity area in the box. Example, If you were a old and rich account holder in a particular bank, they probably are used to this type of transaction and wouldn't likely report it. However, you are a brand new accountholder, with a lot smaller assest, they would consider this BLIP on their radar screen.

 

There is much more on this website. I will let the people concerned read at their own leisure. This is the modern day verison of the laws that nailed Al Capone. Remember, "No legimate means of Support?" Either way, the funds would eventually make the rounds and end up in IRS's court of realm. The only consideration is how long the report takes to get to them! If if does, I can assure you that you will be audited! The penalities begin immediately when you do not file appropriate tax forms, etc. I should know about these statutes. I was auditied for these purposes, and had my ducts in a row! So no penalities were assessed.

 

 

Here is the hyperlink:

http://www.irs.gov/compliance/enforcement/...=113003,00.html

 

I quote...

 

Suspicious Activity Report (SAR)

 

Filed on transactions or attempted transactions involving at least $5,000 that the financial institution knows, suspects, or has reason to suspect the money was derived from illegal activities. Also filed when transactions are part of a plan to violate federal laws and financial reporting requirements (structuring)

[Yuanyang]

It be good the hear from a tax specialist. The money being reported doesn't bother me at all. We will have legitimat reasons for the money and the source is legitmate so no big deal. Reporting the amounts (if any) over $10,000 is a good thing. The IRS won't tax you for that money as income.

[notrevorich]

When we left China on Sept. 16, My wife had $5K in her wallet, and I had $10K in my boot.  Neither of us were questioned about $$ when we left China through Macau, or when we entered the US in Seattle.

 

Because my wife was VERY nervous about carrying any more cash than that, we opened a credit card account with Bank of China about 2 weeks prior to our departure, and loaded it with a little over $10K.  Fortunately, we haven't had to use the BOC Visa card much since we've been here, but it's comforting to know that we have that cash in reserve.

 

The BOC Visa card is accepted here by merchants and at ATM machines just the same as any Visa card issued by a domestic bank.

 

That's an approach you might want to try if your really nervous about carrying cash out of China.

42707[/snapback]

We did pretty much the same thing except used a Bank Check from the Bank of China and legally left with $16k for the SO and her Daughter ,

When we left the Guz the Chinese Searched Everything we Had except me .

I had the 2 checks hidden and only 1K in my Wallet .

They are damn serious about the 5K limit when leaving China .

The SO has a Visa debit card and that is also working well.

The Only problem for Us was getting Bank acccounts so we could cash the Checks .

I had to search a while but got that done today .