Question for the Money Doctors
Question submitted on Oct 9, 2012.
QuestionIf I transfer money from my account from a foreign bank account, will I have to pay taxes when I transfer it or report it on my Federal tax return?
Also, would I have to file form 3520? What is the amount of minimum assets required to file this form?
The answer to the first question is no. The simple fact that there is a TRANSFER does nothing as far as taxation. Taxation might have been required when originally earned (work, interest, etc) or perhaps it''s already been taxed (net proceeds from work) or not taxable (gift). In any event the transfer triggers nothing.
Form 3520 MIGHT have to be completed or it might NOT. Without knowing the source of these funds and the tax status there is no way to make a determination for you. If you resubmit your question with that detail we should be able to answer the question.
For additional information visit http://www.360financialliteracy.org/