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 ofcourse), 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,------------------------------------------------------------------
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 inocome 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 wouild 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 likley 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
-------------------------------------
David Ingram wrote:
However, I regularly search for the words"PAYING
CUSTOMER" and always answer them first if they did not get spammed out. As an
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Therefore, if an email is not answered in 24 to 36 hours, it is lost in space. You can try and resend it but if important AND YOU TRULY WANT OR NEED AN ANSWER, you will have to phone to make an appointment. Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321. expert US Canada Canadian American Mexican Income Tax help.
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$1,700 would be for two people with income from two countries
Catch - up returns for the US where we use the Canadian return as a guide will be $150 to $500.00 depending upon numbers of bank accounts, RRSP's, existence of rental houses, etc.
Just a guideline not etched in stone.
David Ingram expert income tax and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty advice on bankruptcy
It is very unlikely that blind or unexpected email to me will
be answered. I receive anywhere from 100 to 700 unsolicited emails a
day and usually answer anywhere from 2 to 20 if they are not from existing
clients. Existing clients are advised to put their 'name and PAYING
CUSTOMER' in the subject and get answered first. I also refuse to be a
slave to email and do not look at it every day and have never ever looked at it
when I am out of town. e bankruptcy
expert US Canada Canadian American Mexican Income Tax
help
Therefore, if an email is not answered in 24 to 36 hours, it is lost in space. You can try and resend it but if important AND YOU TRULY WANT OR NEED AN ANSWER, you will have to phone to make an appointment. Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321. expert US Canada Canadian American Mexican Income Tax help.
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Canada Canadian American Mexican Income Tax
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David Ingram gives expert income
tax & immigration help to non-resident Americans & Canadians from
New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
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Phone consultations are $400
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expert US Canada Canadian American Mexican
Income Tax help.
This is not intended to be definitive but in
general I am quoting $900 to $2,900 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.
$1,100 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
$2,900 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 $175.00 up.
With a Rental for $375
A Business for $375 - Rental and business likely
$500
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 $800 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 will be $150 to $500.00 depending upon numbers of bank accounts, RRSP's, existence of rental houses, etc.
Just a guideline not etched in stone.
This from "ask an income trusts tax and immigration expert"
from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily
basis with expatriate tax returns with multi jurisdictional cross and
trans border expatriate problems for the United States, Canada, Mexico,
Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand,
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