I had an Off shore account with Zurich international in Dubai and I transferred the policy to my brother -in- law before I come to US. now I need to liquidate the amount (over 150k USD) which under my brother in law name. Is it OK for him to wire the money to my account in USA? will it be taxable? any action required by me to declare? should I report it as an income in 2017 tax? could be under gift from him? Thanks
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You would Not include the wired/transferred funds on a federal tax return. The funds transferred would be considered a gift from a foreign person. Since the funds being transferred are from a foreign person and the amount is greater than $100,000, you will have to report the funds received on an IRS Form 3520. The Form 3520 is an IRS informational form only and you are not taxed on the transfer of funds.
TurboTax does not support Form 3520.
IRS Form 3520 - https://www.irs.gov/pub/irs-pdf/f3520.pdf
IRS Form 3520 instructions - https://www.irs.gov/pub/irs-pdf/i3520.pdf
You would Not include the wired/transferred funds on a federal tax return. The funds transferred would be considered a gift from a foreign person. Since the funds being transferred are from a foreign person and the amount is greater than $100,000, you will have to report the funds received on an IRS Form 3520. The Form 3520 is an IRS informational form only and you are not taxed on the transfer of funds.
TurboTax does not support Form 3520.
IRS Form 3520 - https://www.irs.gov/pub/irs-pdf/f3520.pdf
IRS Form 3520 instructions - https://www.irs.gov/pub/irs-pdf/i3520.pdf
If the gift from a foreign individual is $100,000 or less then a Form 3520 is not required to be filed with the IRS.
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