On Apr 2, 7:25 pm, "Ed Harper" <harperbaz...[at]gowl.com> wrote:

- quote -

No. Only gifts over 100k have to be reported on form 3520 within 90
days of the event, and the penalty for not reporting is 5% of the gift
up to a total of 25%. It should in my opinion be 5 to 25% of the
amount over 100k, but that's another story.

http://www.irs.gov/pub/irs-pdf/i3520.pdf

The spouse who is a US person must pay taxes on gifts he gives to his
spouse who is not a US person, on the amount above a certain
threshold. The threshold is currently 125k. Note that the general
annual gift exclusion is 12k.

http://www.irs.gov/formspubs/article...112782,00.html

If the US person is married to a foreign person of the same sex, and
in the other country this is recognized as a valid marriage, then
would the 125k or the 12k limit apply? I'm guessing that the US would
not recognize the marriage, and the 12k limit would apply.

Here is an interesting article:

http://www.us.kpmg.com/microsite/tax.../article01.htm


- quote -

Yes, a form 3520 must be filed because the total gifts received for
the year is 112k. Even at 90k I would file just to avoid a penalty.


- quote -

Probably yes because the dollar keeps dropping.


- quote -

If the account is still in her name, there are no reporting
requirements. It's her own money being transferred.


- quote -

This question is almost the same as: If I buy something for X for
personal use then sell it for Y where Y is less than X, do I have to
pay taxes? I think the answer is no. Hope someone can qualify this.


- quote -

There's no depreciation write-off. If anything, when you sell
property, you have to recapture depreciation (meaning roughly pay back
the taxes you deducted in earlier years). However, only business
property (includes rental property or portion of your personal home
used for business) is subject to depreciation. I'm guessing that the
deposit of 20k would be a reported, but a transfer of 20k between my
various accounts at the same institution would not.

--
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"Ed Harper" wrote:

- quote -

Moving money from one place to another is not a taxable event for income tax
purposes. Moving money in dribs and drabs because of either paranoia about
the government or an effort to make things look like what they aren't is a
pretty good way of attracting the government's attention. See Eliot
Spitzer.

I think an immigration lawyer.would be the best source of a plan to patriate
the soon-to-be resident alien spouse's assets.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

1. Prior to her immigration, non resident alien wife direct wire transfers
$12,000 of her non-US foreign company income) to American husband's checking
account so he can pay off a car loan. He saves all documentation regarding
the transfer, source of money and loan payoff.

Any reporting requirements or any future tax consequences?

2. Prior to her immigration, non resident alien wife direct wire transfers
the balance of her savings and foreign job severance pay from her foreign
bank account to her husband's account. The amount is $100,000 of foreign
earned income. Her name cannot be added to the bank account until after her
arrival and she obtains a Social Security number.

Would she be better off leaving the entire balance in her foreign bank
account and using an ATM card here in the US to make withdrawals as needed?
What would happen once she is in the US and wants to use an ATM card to make
periodic withdrawals of the money if it is transferred to a domestic
account? Future tax consequences? Reporting requirements?

3. Man takes out a $30,000 auto loan to purchase a vehicle. Several years
later he finishes paying off the loan with the total payoff totaling about
$36,000 including interest. He then sells the vehicle, receiving a cashiers
or personal check for $20,000, which is the exact blue book value.

When he deposits the 20K in his bank account, will this be reported to the
IRS under the Currency Reporting Act? Can the sale of the vehicle be
reported on his 2008 Form 1040 as a depreciation write-off? Other future
consequences or reporting requirements?

Thanks in advance from any experienced CPAs or tax experts.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >