How can I transfer money from brother -in Law in Dubai to USA?

[wagdyoussef]

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

[DoninGA · Accepted solution]

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

[wagdyoussef]

If my Brother in Law put the money in my Dubai account and I used Global banking to wire it to myself in USA, Do I need also to file Form 3520?
Also can the Bank does that form?

[DoninGA]

If you are transferring funds from your own foreign personal account to your own US personal account, then there is no reporting by you for the funds transfer.  You would not send anything to the IRS concerning this transfer of personal funds.
Your US Bank may inform the IRS of cash deposits of $10,000 or more using IRS Form 8300.

[wagdyoussef]

Thank you very much for the advise

[xl564a]

If the gift is $100k or under will you still need to file it ?

[DoninGA]

@xl564a 

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.

[xl564a]

Thank You so much !!!!