This has gone to all three lists because it is US info, International Info and even applies to Canada.
ingram
XXXXXXX XXXX wrote:
Below is the result of your feedback form. It was submitted by
XXXXXXX XXXX on Tuesday, May 12, 2009 at 12:13:30
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My_question_is: US-specific
question: What would be the best, cheapest and legal way to transfer money from the sale of our home in SA. I am a South African, and my husband is a American, we recide in GA. It should be around $50 000.00 Thank you for taking the time in answering my question.
Sincerely,
XXXXXXX
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david ingram replies:
I actually had a client jailed in South Africa for smuggling about $50,.000 out of South Africa back in about 1977 when currency controls were in force. $5,000 US was the most you could take out legally at the time.
Today, the limit is 2,000,000 rand which is about US 235,000 and there would not be a problem with $50,000.
I usually just say to go to the bank that you prefer to deal with. You will likely pay a slightly higher fee than is possible if you deal with a company like HiFX in San Francisco
Sometimes, the relationship with a local bank can be worth a couple of points spread.
However, if you do not need that relationship, you might as well deal with someone like Nathan Barcic of HiFX Foreign Exchange Specialists in San Francisco
Nathan Barcic
Senior Business Development Consultant
HiFX, Inc.
250 Montgomery Street, Suite 910
San Francisco, CA 94104
Phone: +1 (415) 678-2770
Toll Free: 1 (877) 999-4439
Fax: +1 (415) 773-1822
Mobile: +1 (415) 305-1638
HiFX has offices in -
Auckland London Marbella San Francisco Sydney Toronto Windsor
No office in South Africa but i am sure that Nathan can help you.
When the money comes in from out of the country, your bank will file a form and report the transfer to the US FINCEN on form 104. .
These older questions on money transfer in general will help I am sure
taxman at centa.com: Please see bottom of message if you wish to unsubscribe.
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Dear David Ingram,
I have a question regarding bringing money into the
United States.
I am a green card holder and I have received it
through my wife (She is an American Citizen) a few
months ago and therefore I have not filed any tax
papers till today.
I live in Iran at the moment and I will be moving to
the United States (California) in the next month to
continue my studies. I have a property in Iran which I
will be renting it during my stay in the States. How
would it be possible for me to receive the monthly
rent money from Iran (legally of course), without
having to pay any kind of tax on it in the states ( As
I will pay tax for it once in Iran).
Or if one day I would sell the house, how can I bring
the money in ?
If there is too much sensitivity on Iran, I can also
receive the money from another country such as Dubai
(If that would help).
How do you think I should handle this money transfer
in order to avoid any tax problems ?
Any help or advise from you would be highly
appreciated.
Regards,
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david ingram replies:
The second you receive your green card you will become taxable on your world wide income in the United States whether you earn it from wages or services or whether it is investment income such as rent, capital gains, interest or dividends.
You will pay your tax in Iran first and then report the gross and net amounts after expenses again on US schedule E which will be part of your US 1040 tax return. Any tax paid to Iran will be a credit on the 1040 by filing US form 1116.
I recognize that it may be difficult to transfer money directly from Iran to the US. However, the paper trail would be better if you could do so. If not and Dubai has to be an intermediary, use it. Just keep a good paper trail.
With a wire transfer, you do not need to fill out any US forms, the bank will do it for you.
When and if you sell, the profit from 'when you entered the US to actual sale' will also be taxable on your US return. I think that Iran has a flat capital gains tax of 25% but am not positive so you will have to check this further.
However, if you do pay capital gains tax to Iran, it will also be a tax credit on form 1116 after reporting the capital gain on schedule D.
This older Question will likely assist you or you and your wife to understand the paperwork.
------------------------------
What forms do I have to fill out if I am transporting more than $10,000 across the American Border
==============================
david ingram replies: The forms are 104 and 105 for the US if you are taking money in or out of the US.
The US bank will report the deposit or withdrawal to the US FINCEN on form 104 which you can find at: http://www.irs.gov/pub/irs-pdf/ffc104.pdf
When you move the money out of the USA, by money order or check, the bank or financial institution will report it again.
The US penalties for failure to fill in these simple forms is up to $500,000 PLUS 5 years in jail.
If you remove more than $10,000 at any one time, the bank will report those transactions as well.
If you decide to carry the cash or transport it in or out of the USA as a cashier's cheque, you have to file form 105. You can find the form at: http://www.irs.gov/pub/irs-pdf/ffc105.pdf
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SUGGESTED PRICE GUIDELINES - May 17, 2008
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US / Canada / Mexico tax, Immigration and working Visa Specialists
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My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) expert US Canada Canadian American Mexican Income Tax service help.
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pert US Canada Canadian American Mexican Income Tax service and help.
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This is not intended to be definitive but in general I am quoting $900 to $3,000 for a dual country tax return.
$900 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only (but were filing both countries) - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,200 would be the same with one rental
$1,300 would be the same with one business no rental
$1,300 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
$1,600 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits no move in or out
$1,700 would be for two people with income from two countries
$3,000 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $200.00 up. However, if you have a stack of 1099, or T3 or T4A or T5 or K1 reporting forms, expect to pay an average of $10.00 each with up to $50.00 for a K1 or T5013 or T5008 or T101 --- Income trusts with amounts in box 42 are an even larger problem and will be more expensive. - i.e. 20 information slips will be at least $350.00
With a Rental for $400, two or three rentals for $550 to $700 (i.e. $150 per rental) First year Rental - plus $250.
A Business for $400 - Rental and business likely $550 to $700
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS be $900 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales) are likely $50.00 for the first and $20.00 each after that.
Catch - up returns for the US where we use the Canadian return as a guide for seven years at a time will be from $150 to $600.00 per year depending upon numbers of bank accounts, RRSP's, existence of rental houses, self employment, etc. Note that these returns tend to be informational rather than taxable. In fact, if there are children involved, we usually get refunds of $1,000 per child per year for 3 years. We have done several catch-ups where the client has received as much as $6,000 back for an $1,800 bill and one recently with 6 children is resulting in over $12,000 refund.
Email and Faxed information is convenient for the sender but very time consuming and hard to keep track of when they come in multiple files. As of May 1, 2008, we will charge or be charging a surcharge for information that comes in more than two files. It can take us a valuable hour or more to try and put together the file when someone sends 10 emails or 15 attachments, etc. We had one return with over 50 faxes and emails for instance.
This is a guideline not etched in stone. If you do your own TDF-90 forms, it is to your advantage. However, if we put them in the first year, the computer carries them forward beautifully.
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Nathan.barcic at hifx.com www.hifx.com
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