Overseas Financial Assets

jctaxinnj · ‎November 16, 2022

hi,

If the spouse has financial assets overseas what is the max amount the can be transferred in. My in=laws has been filing the oversea country's taxes each year. Also what is the tax implication for it.

RSUMan · ‎November 16, 2022

If your spouse has financial assets overseas, there is no limit on the amount that can be repatriated to the United States. I am assuming Spouse had money in a foreign account and that the marriage occurred and now you and Spouse live in the United States. A transfer of the financial asset is not Gross Income that gets reported on your Form 1040. On the other hand, the financial regulators are interested in foreign money transfers. The Treasury Department completes Suspicious Activity Reports when large amounts of money move in and out of the country. It is prudent to discuss the transfer with the US receiving entity. For example, the large US banks have employees who move money every day and they can advise on completing transfers in the best possible manner and in compliance with all US Anti Money Laundering rules.

As for your in-laws, they appear to be citizens of a foreign country and are complying with the laws of the country they live in. That is a good thing and has no bearing on your US income taxes.

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RSUMan · ‎November 16, 2022

If your spouse has financial assets overseas, there is no limit on the amount that can be repatriated to the United States. I am assuming Spouse had money in a foreign account and that the marriage occurred and now you and Spouse live in the United States. A transfer of the financial asset is not Gross Income that gets reported on your Form 1040. On the other hand, the financial regulators are interested in foreign money transfers. The Treasury Department completes Suspicious Activity Reports when large amounts of money move in and out of the country. It is prudent to discuss the transfer with the US receiving entity. For example, the large US banks have employees who move money every day and they can advise on completing transfers in the best possible manner and in compliance with all US Anti Money Laundering rules.

As for your in-laws, they appear to be citizens of a foreign country and are complying with the laws of the country they live in. That is a good thing and has no bearing on your US income taxes.