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What is the maximum amount of money that a green card holder could transfer to his US account? is it a taxable income?

Irvine, CA |

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.

Attorney Answers 5


  1. Best answer

    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.

    See:
    http://www.treasury.gov/resource-center/sanctions/Programs/Documents/iran.txt


  2. 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.

    This answer is based on general legal principles only and is not intended to provide specific legal advice. This answer is for informational purposes only and does not constitute the formation of a lawyer-client relationship. Any reader of this answer should not make decisions based upon in without first directly consulting with an attorney


  3. 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.

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is philsmithjr@worldclasslawyers.com.


  4. 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.

    In addition to AVVO's disclaimer, please note that by this answer no attorney client relationship is intended mor entered into and unless there is a signed retainer agreement in place, neither me nor anyone in our office has intended to solicit clients nor reprints them. The answers are general in nature and without weighing specifics of particular query. No answer should be relied on in whole or in part, directly or otherwise to act or not to act in pursue of any of your potential claims in law or equity. You should consult with and obtain advise or representation of an attorney to protect your rights regarding your case or matter.


  5. 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
    http://taxlitigator.wordpress.com/2013/11/10/new-fbar-form-114-and-revised-irs-appeals-procedures-re-fbar-penalties/

    Good luck to you!

    The answer to this question does not establish an attorney-client relationship. Moreover, this attorney is licensed to practiced law ONLY in the State of California. Answers to questions from users in other jurisdictions or states are meant to provide only general information. Users should contact a local attorney in their jurisdiction or state to address their specific tax issue.