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  1. #1
    Join Date
    Nov 2010
    Posts
    15

    Default Holding Assets for a Ward in an Overseas Bank Account

    My question involves a power of attorney in the state of: Asia (but I live in NC)

    Hi

    My mom is old and live in Asia, she is not American citizenship but I am. Few years ago, my mom gave me power of attorney to manage all her asset. Recently she sold a property and the lawyer deposited proceeds into my Asia bank account. My mom instructed me to divide the proceeds among my brothers and sisters as gift, including me.

    My questions are the following:

    1) Do I need to report this to IRS since my Asia account has more than $10K US dollars now.
    2) Can IRS consider these proceeds as my income (because it is in my Asia account with my name) and force me to pay tax as capital gain or as oversea income ? I can show the doc of power attorney from my Asia lawyer and also show all sales doc and the distribution checks to my brothers and sisters.
    3) Do I need to pay tax if my mom gives me money as gift? Someone told me that the giver needs to pay tax, not the receiver, but my mom is not a US citizen.

    Thanks for any answer.

    KK

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Power of Attorney - Do I Need to Pay Tax if Money Goes to My Acct Instead of Mom'

    Quote Quoting okokok
    View Post
    My question involves a power of attorney in the state of: Asia (but I live in NC)

    Hi

    My mom is old and live in Asia, she is not American citizenship but I am. Few years ago, my mom gave me power of attorney to manage all her asset. Recently she sold a property and the lawyer deposited proceeds into my Asia bank account. My mom instructed me to divide the proceeds among my brothers and sisters as gift, including me.

    My questions are the following:

    1) Do I need to report this to IRS since my Asia account has more than $10K US dollars now.
    2) Can IRS consider these proceeds as my income (because it is in my Asia account with my name) and force me to pay tax as capital gain or as oversea income ? I can show the doc of power attorney from my Asia lawyer and also show all sales doc and the distribution checks to my brothers and sisters.
    3) Do I need to pay tax if my mom gives me money as gift? Someone told me that the giver needs to pay tax, not the receiver, but my mom is not a US citizen.

    Thanks for any answer.

    KK
    Yes, you need to report the foreign bank account to the IRS.

    No, the money is not income for tax purposes. It is a gift from your mother and gifts are not "income".

    No, you do not pay taxes on gifts. However, if your brothers and sisters are to receive more than 14k, each, from the money, you may have to fill out a gift tax return. You will not actually owe any tax on the money, but it will go against your lifetime exclusion for gifting.

  3. #3
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Power of Attorney - Do I Need to Pay Tax if Money Goes to My Acct Instead of Mom'

    There are 2 types of annual foreign asset reporting the IRS requires. One is done on your tax return the other sent yearly. I believe the asset disclosure (not tax return) is $10k or more only.

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