Lending Money To Parents Abroad

[coolrocks86]

I (US citizen) wired $20k to lend to my parents (non US citizens) abroad. Do I need to file anything for this (any forms, FBARs)? Also at some point they will wire me back $20k to the US. How can I avoid tax implications for this?

[OpeA1]

Hi coolrocks86!

It seems as though the money sent to your parents was a loan (gift). You are allowed, according to US law, to gift $15,000/person in a tax year without any tax implications. If that is the case, there is no tax implication for you. Be sure to keep good records, to document the return on of the loan to avoid tax implications. You are only required to fill out the FBAR if you have a foreign bank account. 

I hope this is helpful.

OpeA1