CPAnet Forum: General questions

Active Topics

Memberlist

Help

REG STUDY GROUP
CPAnet Forum : REG STUDY GROUP

Topic: General questions (

Topic Closed)

Author

Message

<< Prev Topic | Next Topic >>

tawoegna
Contributor

Joined: 10 Aug 2009
Online Status: Offline
Posts: 55

Posted: 10 Nov 2011 at 14:54 \| IP Logged

Hi Everyone,

I have two questions:

1 - If you inherit let's say 500,000USD from a parent who resided in a foreign country and you wish to bring that money within the U.S., is it taxable?

2 - Let's assume that you have 1,000,000USD in a foreign country, you decided to move to the U.S. with that money, is it taxable under the U.S. tax law?

Thank you in advance for your input.

tawoegna
Contributor

Joined: 10 Aug 2009
Online Status: Offline
Posts: 55

Posted: 14 Nov 2011 at 14:18 \| IP Logged

Please help with the two above-mentioned questions.

Thank you,

divyagovil1
Major Contributor

Joined: 30 Jan 2009
Location: India
Online Status: Offline
Posts: 1456

Posted: 15 Nov 2011 at 00:49 \| IP Logged

tawoegna wrote:

Hi Everyone,

I have two questions:

1 - If you inherit let's say 500,000USD from a parent
who resided in a foreign country and you wish to bring
that money within the U.S., is it taxable?

As per my understanding, NOT TAXABLE for inheritance
received.

refer following excerpt from IRS publication on Estate
and Gift Taxes:

"No tax payable by the person receiving your gift or
bequest. Generally, the person who receives your gift
or your bequest will not have to pay any federal gift tax
or estate tax because of it. Also, that person will not
have to pay income tax on the value of the gift or
inheritance received. However, covered gifts or bequests
received from expatriates after June 16, 2008, may be
subject to tax. Consult your tax adviser for more
information"

Source: http://www.irs.gov/pub/irs-pdf/p950.pdf

__________________
Divya - CO State

Passed using Becker Review :
FAR - 04/11/09 - 94
BEC - 05/30/09 - 86
REG - 08/29/09 - 95
AUD - 11/21/09 - 92
Ethics - 2011

divyagovil1
Major Contributor

Joined: 30 Jan 2009
Location: India
Online Status: Offline
Posts: 1456

Posted: 15 Nov 2011 at 01:06 \| IP Logged

tawoegna wrote:

Let's assume that you have 1,000,000USD in a foreign
country, you decided to move to the U.S. with that money,
is it taxable under the U.S. tax law?

IMO, NOT TAXABLE. However, you would have to declare the
money if it exceeds $10,000.

Refer the link:
https://help.cbp.gov/app/answers/detail/a_id/195/kw/bring
ing%20money%20to%20the%20US

Still, you can always consult a tax advisor for more
info

__________________
Divya - CO State

Passed using Becker Review :
FAR - 04/11/09 - 94
BEC - 05/30/09 - 86
REG - 08/29/09 - 95
AUD - 11/21/09 - 92
Ethics - 2011

tawoegna
Contributor

Joined: 10 Aug 2009
Online Status: Offline
Posts: 55

Posted: 15 Nov 2011 at 10:05 \| IP Logged

Thank you very much Divyagovil1. My boss asked me these questions and I did not know what to answers.

Thanks again,

-------------------

Passed using Becker Review:

FAR - 07/2009 - 89

AUG - 08/2009 - 90

REG - 10/2009 - 85

BEC - 11/2009 - 90

Ethics - 2010

Sorry, you can NOT post a reply.
This topic is closed.

Printable version

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum