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Do I have to declare to the IRS money that's coming from abroad through my financial Institution(my bank) to purchase a home?

Malden, MA |
Filed under: International law

I have $60,000 that is coming from Brazil which I will use to purchase a home here in the US.
Do I have to declare that as an income?

Attorney Answers 4


  1. If this money is in fact income, then it should be included on both your federal and state tax returns.

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  2. You need to report all income and assets accurately to your lending institution. You only need to declare that money as income if it was income, as opposed to a gift, a personal injury settlement, repayment of a loan, or a transfer of savings, etc. You should not report that money based on the answers in this forum. You need the advice of someone looking at your forms together with you.

    Christopher Vaughn-Martel is a Massachusetts lawyer with the firm of Vaughn-Martel Law in Boston, Massachusetts. All answers are based on generalized Massachusetts law and the limited facts presented by the questioner. All answers are provided to the general public for educational purposes only and no attorney-client relationship is formed by providing an answer to a question. If you would like an attorney with Vaughn-Martel Law to review your specific situation and provide you with legal options or information specific to you, you may schedule a telephone or office by calling 617-357-4898 or visiting us at www.vaughnmartel.com. Our office charges $100.00 for a consultation, and applies your consultation fee to your first bill if the Firm is hired to perform further work.


  3. If this money is a gift, it is not taxable. If it is income, namely something that is the result of service or goods you provided or sold, than you need to pay taxes. Unless, however, special double taxation rules apply (e.g. you have already paid taxes on this amount).
    It is sound to talk to an attorney to clarify each doubt.
    Best

    This reply is offered for educational purpose only. You should seek the advice of an attorney. The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than an educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the undisclosed individual asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of New York. Responses are based solely on New York Law unless stated otherwise. Pursuant to Internal Revenue Service guidance, be advised that any federal tax advice contained in this written or electronic communication is not intended or written to be used and it cannot be used by any person or entity for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. Federal taxing authority or agency or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.


  4. The previous answers are all correct in that you haven't included sufficent information to get a complete answer. Citizens and residents of the US are required to report on their income tax returns here all income world wide. So you should get advice from an attorney before the transfer is made in addition to how to take title to the real estate you are about to purchase.

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