Tax question about money transfer(s) to US bank account

[canrun]

Hey folks, I have a two-part question:

 

My wife's parents unfortunately both passed last year. She has inherited their home and their savings account. I hope someone can give me a heads-up on our tax situation under the following scenarios:

 

1. We will sell the parents' home in the next 2-3 years and wire that money to our joint bank account in the US. Well, at least attempt to! Ha. What kind of tax bill will that hit us with? Do any of you have any personal experience with this scenario? (The sale of a home in China and repatriating funds.) I'm thinking several here might. Any general advice about the process is appreciated!

 

2. In the interim, we want to transfer the parents' savings to our US bank account. As I understand it, a Chinese national can send up to 50K US per year abroad. We would wire the full 50K. How would that transfer be taxed on the US side? As regular income? Again, if anyone has any personal experience with this kind of transaction I'd appreciate any advice on the process as well.

 

Thanks for any help! I appreciate and general or specific advice you can give.

 

Cheers,

Aaron

[Randy W]

Transfer are not taxed. Inheritances are not taxed below $11.4 million. The home sale I'm pretty sure would not be taxed, but you might get some professional advice there.

 

If you can verify that the home sale would be tax free, I'm not seeing any tax liability at all. In any event, your basis value would be the value at the time of death. The best indication of this value would be the sale price, making your net "profit" $zero.

 

I've never transferred money China to U.S., but you should be able to line up relatives and friends to do $50,000 transfers for you until you have the entire amount covered. The transfer itself is not income.

[Randy W]

Here's an article with more information -

 

 

How to get your earned money out of China? | Maxxelli Consulting

 

I'm not sure what hurdles you might face, especially with the inherited money. You could always check with a law firm, like Gary Chodorow.

 

The only member I can think of who might have transferred large amounts is 2mike&jin.

 

Remember that it's a two step process - converting the money to dollars, and wiring it - but not necessarily in that order.

[Randy W]

A couple of posts from him that might be useful

 

http://candleforlove.com/forums/topic/43272-can-i-open-a-bank-account-that-works-in-both-the-us-and-china/page-2?do=findComment&comment=599192

 

http://candleforlove.com/forums/topic/45920-is-us-citizenship-worth-it/?do=findComment&comment=602888

[canrun]

Thank you, Randy. I will check those out now. Yes, Chodorow is a very good resource.

 

I remember Mike from my "busy time" posting here many years ago. Is he still active on the boards?

[Randy W]

Thank you, Randy. I will check those out now. Yes, Chodorow is a very good resource.

 

I remember Mike from my "busy time" posting here many years ago. Is he still active on the boards?

 

 

Not in a few years - since Feb., 2014.

[canrun]

 

Thank you, Randy. I will check those out now. Yes, Chodorow is a very good resource.

 

I remember Mike from my "busy time" posting here many years ago. Is he still active on the boards?

 

 

Not in a few years - since Feb., 2014.

 

I see. Thank you.