Hello,
I am a US resident (lived here for a long time on a H1B visa) but I don't have a green card yet. I want to pay for a new car for my family who are overseas and they are not US citizen / resident.
Car cost is $25,000.
1. Can I send the entire amount at once to the car dealer?
- What are be the tax implications?
- Do I need to file extra forms (gift tax etc.)
- Do I need to pay any tax on it?
- Is there any law that prevents me (individual) from sending money to a legal foreign entity (car dealership)?
- Is there anything else, relevant to US laws, I should consider before transferring money?
2. Can I send this amount to my foreign bank account and my family pay for the car from my bank account?
- What are the tax implications?
- Do I need to file extra forms (gift tax etc.)
- Do I need to pay any tax on it?
- Is there any law that prevents me (individual) from sending money to a legal foreign entity (car dealership)?
- Is there anything else, relevant to US laws, I should consider before transferring money?
I have an additional question:
I have read that if I maintain $10,000 in an foreign bank account then I need to report the bank account to the IRS.
- Does it mean average daily balance of $10k?
- If I don't maintain this amount then I don't have to report that I have a foreign bank account?
- Is there a limit on how much money I can transfer to my bank account per year? I transfer money for family maintenance.
Thank you
