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Bringing Big Sum of Money into the U.S

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  • 07-08-2009, 07:28 PM
    Yumichan
    Bringing Big Sum of Money into the U.S
    I have about $100K in Japan from my father`s life insurance. I want to bring it back to the US to use as my down payment for my house.

    If I had it wired to my bank account in the US, would I have to declare as income? Will I be taxed for it? If I had it wired in small increments, would I still be taxed?

    What if I convereted it into travelors check (or a bank check) and carried it back? Would that make any difference in the taxes?

    I did not have to pay taxes on this money in Japan, since it did not exceed the taxable amount of Life Insurace. Do I need documentation on this money (like a receipt) that this money was paid to me (and my brother) and have it translated?

    I would appreciate any kind of help in this matter!
    Thank you.
  • 07-09-2009, 03:02 AM
    llworking
    Re: Bringing Big Sum of Money into the U.S
    Quote:

    Quoting Yumichan
    View Post
    I have about $100K in Japan from my father`s life insurance. I want to bring it back to the US to use as my down payment for my house.

    If I had it wired to my bank account in the US, would I have to declare as income? Will I be taxed for it? If I had it wired in small increments, would I still be taxed?

    What if I convereted it into travelors check (or a bank check) and carried it back? Would that make any difference in the taxes?

    I did not have to pay taxes on this money in Japan, since it did not exceed the taxable amount of Life Insurace. Do I need documentation on this money (like a receipt) that this money was paid to me (and my brother) and have it translated?

    I would appreciate any kind of help in this matter!
    Thank you.

    It would not be taxable, but it may have to be reported to the federal government. You are right at the dollar limit.

    Please read the following IRS article:

    http://www.irs.gov/businesses/articl...200722,00.html
  • 07-09-2009, 04:57 PM
    Yumichan
    Re: Bringing Big Sum of Money into the U.S
    Thank you very much! Though the language is difficult to understand, I will carefully read the information and take proper steps.

    So, does this mean that if I brought half of the money this year (before December) and bring the other half in January 2010, I will not have to report it to the IRS?

    Thank you again. This was a big help!
  • 07-09-2009, 06:09 PM
    jk
    Re: Bringing Big Sum of Money into the U.S
    Even if you do not report it to the IRS the banks will report it for you to the fed banking regulators. Due to the amount you will be depositing, they are required by law to notify the federal banking regulators of the money.

    In fact, staging the money to avoid their watchful eye is a crime in itself so be very careful what you do.
  • 07-09-2009, 08:10 PM
    KeyWestDan
    Re: Bringing Big Sum of Money into the U.S
    It is not an IRS issue as much as it is a US Customs issue. Money over $10,000 has to be declared if you are bringing it into the country or taking it out. This is totally separate from any taxation issues as to wether the money is US taxable income or not. (You should bring adequate paperwork to demonstrate it is from a legal source to be safe.)

    If you do not declare the money and US Customs finds it, it will be CONFISCATED and you will not get it back.

    If you have the opportunity to make more than one trip, do so and split the money up. There is no telling what might happen on such a long trip.

    And NO, there is nothing wrong with that. It has nothing to do with structuring transactions to avoid the 10k reporting requirement. That applies to banks and bank transfers and similar things. It has nothing to do with Customs or taxes really, it is about money laundering.
  • 07-10-2009, 03:23 AM
    SChinFChin
    Re: Bringing Big Sum of Money into the U.S
    As far as I recall, even if your dad dies tommorrow, you are in the USA, collecting the proceeds of a life insurance is NOT income. I never looked into the tax angles myself, but my dad helped many of our relatives who can't speak English deal with estate attornies, mentioned this fact to me when I was younger.

    I heard some attorney saying that most insurance proceeds are not income because, it replaces something valuable, in this case, the life of your dad. If you had a fire, car accident, etc., the insurance company pays you, it's not considered income either, because it replaced something you already had.

    And if you collected the money in prior years, you're simply moving money from one bank account to another, and that is still not income, its just shifting money around.

    From what I can see, it is in no way income, and you wouldn't have to sneak the money in as if I was a criiminal.
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