topic Bringing money from foreign country in Get your taxes done using TurboTax

Bringing money from foreign country

ricardoj333 — Mon, 26 Aug 2019 20:27:32 GMT

I am a US citizen and my family owns businesses in Peru.

What if I bring large quantities of money (more than $100,000.00) from Peru to the US every year. Does that money pay taxes? What forms I would use to report that? (I was thinking the IRS may consider that as income, am I right?).

Any help will be greatly appreciated.

Thank you!

Re: Bringing money from foreign country

pk — Mon, 26 Aug 2019 21:00:52 GMT

@ricardoj333

first ---- bringing in money from another country does not automatically become a tax even i.e. to be reported and taxed . US citizen/ resident ( green Card ) Resident for tax purposes are taxed by the USA on world income and generally given credit/ deduction for taxes paid to another country .

second -- source of the money becomes important --> 1. if from investment, then it is taxable; 2. if gift from a foreign person, inheritance from foreign source etc. when above $100,000 need to be reported even though it is not taxable; 3. if this is your own money ( presumably that has been taxed ) sitting in a bank , then while the base amount is not taxable , any earnings is reportable and taxable

third -- if you are planning to bring in large amounts every year, then there always will be question, as to the source ., whether it is income and therefore taxable and why being brought in year by year.

Those are the generalties --- if you want more detailed information, please tell about the source of the money and why are you bringing in bit by bit.

Also note that if the money is sitting in any foreign bank / trust etc. you may have had to and need to report under FBAR and FATCA regulations. This makes it more imperative that we understand the source of the money.

Re: is Foreign pensions taxable

pk — Thu, 14 Nov 2019 02:56:47 GMT

@Tim P -- do you have a question ? I see two "empty" posts -- perhaps something went wrong. Could you post your questions please?

Re: Bringing money from foreign country

4150SABALRIDGE — Fri, 19 Feb 2021 16:59:56 GMT

In my case the money was sitting in a bank for a year and I decided to bring it thinking in buying a property.

I bought $50.000 at the end of the year. I will bring some more this year. My family had a small property and it was sold. What I have to keep in mind and what and how to do it? Thanks

Re: Bringing money from foreign country

pk — Fri, 19 Feb 2021 21:43:28 GMT

@4150SABALRIDGE , assuming you are US citizen/Resident/Resident for tax purposes, the bringing of monies from a foreign account is not a taxable event. However two points to note ---- (a) if the amounts sat in a foreign account that you own then both FBAR ( form 114 at BSA-Efiling or FinCen.gov ) and FATCA ( form 8938 along with your return ) filings may be required. ; (b) if the monies came as gift to you then to the extent the total amount ( no matter where deposited ) is equal or over US$100,000, you may have to file a form 3520.

Does this help or do you need more on how to file these forms etc. ?