I am planning to buy a house and do some investments in US with my parents fund. I was wondering if there is any limitation for the amount of money that a green card holder could transfer to his US account from his homeland country? How should I report it to IRS? is it taxable income?
BTW, my nationality is Iranian.
As a green card holder you are subject to U.S. world wide income and information reporting. While transferring cash from your offshore accounts to your US accounts is NOT a taxable event, information reporting is an issue. If you had more than 10K offshore for even 10 seconds file the annual TDF 90-22.1s. You need special permission to transfer money from Iran to the U.S. under the OFAC regulations. Don't forget your 8938 reporting if the accounts were greater than 50K on your us return. Do not attempt to bring undeclared cash in a suit case which is likely to be confiscated by customs. Get with a good international tax CPA or attorney to hammer out the details whom is familiar with OFAC.
There is not a limit on funds generally you can transfer into a US account. There may be gift tax implications if your parents gift you the money. However, if they are Iranian citizens they will likely not incur US gift taxes as the person giving the gift pays usually the taxes, and the tax is assessed based generally on the country where the giver has residency. Thus, if your parents are Iranian residents it would likely not incur US taxes on the mere transfer into an account for your use. You should still counsel a tax attorney who understands international tax issues and clearly discuss all relevant details to these transactions.
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You will also be required to file form 3520 and report igifts from a non-resident alien that you receive in any calendar year that exceed $100,000.00.
Hope this helps.
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Real Estate Attorney
You receive good answers from colleagues above. Most importantly under new sanctions against Iran you should obtain a license for the intended transfer from IRS/OFAC.
I have seen large number of transfers to US without OFAC license to be blocked and becomes a much bigger problem to get released often involving standards of proof next to impossible to achieve.
So best not take a chance and consult with an attorney. Good luck.
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Mr. Klasing and the other attorney have provided you with excellent answers. I would add that FinCEN Form 114 has replaced the former Report of Foreign Bank and Financial Account (FBAR), Form TD F 90-22.1 (Form TD F 90-22.1 is now obsolete). FinCEN Report 114, Report of Foreign Bank and Financial Accounts, is used to electronically report a financial interest in or signature authority over a foreign financial account. New FinCEN Form 114(a), Record of Authorization to Electronically File FBARs, is for filers who submit FBARs jointly with spouses, or desire to submit them via third-party preparers.
Effective July 1, 2013, the FBAR must be filed electronically through the Bank Secrecy Act E-File System and must be received by on or before June 30th of the year immediately following the calendar year being reported. The June 30 filing date may not be extended. The reference to FBAR Form TD F 90-22.1 has been replaced with a reference to FinCEN Form 114 on Schedule B, Line 7b of Form 1040 for tax year 2013.
See http://www.fincen.gov/whatsnew/html/20130729.html; and
Good luck to you!
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