@v4r3l4 wrote:
@pk
So just so I'm clearly understanding what your saying. As long as I am transferring money to my spouse for other purposes rather than just a gift ( providing for my spouse/ family or purchase a property ). There is no limit to the amount I can transfer without having to report it to the IRS?
Where are you getting this reference from or is it just based on past experience?
At this point, if you are transferring 6 figures to your non-citizen overseas spouse, you need to consult a professional tax advisor who will represent you before the IRS if they get it wrong.
What I think @pk is basically saying is, "my money already belongs to my spouse, so any money I put in her name is not a gift."
That's a very narrow splitting of hairs and I would be very cautious. It may not be true under all circumstances. @pk talks about the laws of Mexico and California, we don't know where you live or what state laws you live under. Just as an example, California's community property law says community property is "all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in the state." If your wife is not domiciled in California, then your wages may not automatically be her joint property.
Then you also have to get around the plan language of section 2523, which describes in specific detail what happens when you transfer property to a spouse.
https://www.law.cornell.edu/uscode/text/26/2523
Plus, if marital property was always automatically joint property, so moving property around was not a gift, there would be no reason to even write the law the way it is written.
If you plan to transfer more than $164,000 and you plan to not report it on form 709, then you really need to talk to a professional who will defend you if the IRS comes to a different conclusion.
