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-   -   Transfer money to parents from US to India - Max Limit (https://immigrationvoice.org/forum/forum99-tax-social-security-and-financial-issues-for-immigrants-and-nonimmigrants/2353016-transfer-money-to-parents-from-us-to-india-max-limit.html)

raajgill12 08-23-2011 04:35 AM

Transfer money to parents from US to India - Max Limit
 
hi

i want to transfer $400,000 to india to my dad to his account.
  • Is there a Max limit I can send without having any IRS implication
  • Do I need to report this transaction to the IRS
  • Should I transfer it in smaller chunks. If yes, then what amount in each chunk
  • Do my parents have to pay tax on the money that I send them although I have already paid tax on it in US

Please let me know if you want more details

gbof 08-23-2011 05:13 PM

Quote:

Originally Posted by raajgill12 (Post 2783092)
hi

i want to transfer $400,000 to india to my dad to his account.
  • Is there a Max limit I can send without having any IRS implication
  • Do I need to report this transaction to the IRS
  • Should I transfer it in smaller chunks. If yes, then what amount in each chunk
  • Do my parents have to pay tax on the money that I send them although I have already paid tax on it in US

Please let me know if you want more details

you sure want to send 400,000$ ? (was wondering if there is typo....and/or dis fig is for =4 lac ruppees)
If your figure is corrent you will have IRS inquiry. I recently wired and banker told any amt over 10k will hv irs in d loop....so i went by 9995$

gauravster 08-23-2011 05:18 PM

GiftTax.
 
Legally speaking (I think, not legal opinion):
1. You can send a most of $11,000 each year without any IRS gift tax implications. In case you are married, you potentially can send 22,000 (11,000 as gift from each one of you). Similarly, if you can possibly send $44,000, $22,000 each to mom and dad each year.
2. Amounts above that, need to be reported to IRS, and a gift tax is applied(I think on the entire amount, not just what exceeds).
3. The limits are for each year.
4. In case of a gift, the tax has to be paid by the gifter, not one who receives it.

It is best to talk to a tax consulatant.

Quote:

Originally Posted by raajgill12 (Post 2783092)
hi

i want to transfer $400,000 to india to my dad to his account.
  • Is there a Max limit I can send without having any IRS implication
  • Do I need to report this transaction to the IRS
  • Should I transfer it in smaller chunks. If yes, then what amount in each chunk
  • Do my parents have to pay tax on the money that I send them although I have already paid tax on it in US

Please let me know if you want more details


Pooja Rijhwani 08-26-2011 06:19 AM

Quote:

Originally Posted by gbof (Post 2785192)
you sure want to send 400,000$ ? (was wondering if there is typo....and/or dis fig is for =4 lac ruppees)
If your figure is corrent you will have IRS inquiry. I recently wired and banker told any amt over 10k will hv irs in d loop....so i went by 9995$

As an NRI, I have been sending money to my family since last year. I used IndusFastRemit money transfer service. I can rely on their services and hope it will be the same for you.

gk_2000 08-26-2011 08:19 AM

ya so dont send cash, just fedex them a gold brick?

PS: I dont know really. I am myself interested what others think about this. If ridiculous, go ahead, have a hearty laugh at it :)

sk.aggarwal 08-26-2011 11:25 AM

Not exactly sure, But I have a NRE account where my mother has local power authority (they have a name for this role). So when ever I need to send money. I just remit to my NRE account and she withdraws it.

I never had 400K to remit .. ahhh ...

snathan 08-26-2011 03:18 PM

Quote:

Originally Posted by gauravster (Post 2785195)
Legally speaking (I think, not legal opinion):
1. You can send a most of $11,000 each year without any IRS gift tax implications. In case you are married, you potentially can send 22,000 (11,000 as gift from each one of you). Similarly, if you can possibly send $44,000, $22,000 each to mom and dad each year.
2. Amounts above that, need to be reported to IRS, and a gift tax is applied(I think on the entire amount, not just what exceeds).
3. The limits are for each year.
4. In case of a gift, the tax has to be paid by the gifter, not one who receives it.

It is best to talk to a tax consulatant.

Are you sure about this...the person receives the gift needs to pay the tax. Not the person who is giving it.

I am paying the tax for the salary which I am receiving and not my employer who is paying me.

snathan 08-26-2011 03:33 PM

Quote:

Originally Posted by gk_2000 (Post 2795701)
ya so dont send cash, just fedex them a gold brick?

PS: I dont know really. I am myself interested what others think about this. If ridiculous, go ahead, have a hearty laugh at it :)

I dont think you can fedex a gold brick. How much will you pay for insurance, customs and import duty in India...?

smuggymba 11-09-2011 11:18 AM

Anyone has answer to this?

What are the tax implications of sending around 60,000 to India from US for one's parents. I don't have a NRI/NRE/NRO account..just Bank of America. Any pointers.

Janakiram 11-09-2011 12:14 PM

Fbar
 
Guys....I hope most of you know this...

1. Living in US, if you have accounts or balances more than $10,000(in equivalency) outside US, you have to file FBAR form each year.

2. If you earn any interest or gain from your assets, it has to be reported on 1040 and pay taxes...

THERE ARE TWO THINGS YOU CANNOT AVOID IN LIFE: DEATH AND TAXES

~Ram

smuggymba 11-09-2011 12:21 PM

Quote:

Originally Posted by Janakiram (Post 2988354)
Guys....I hope most of you know this...

1. Living in US, if you have accounts or balances more than $10,000(in equivalency) outside US, you have to file FBAR form each year.

2. If you earn any interest or gain from your assets, it has to be reported on 1040 and pay taxes...

THERE ARE TWO THINGS YOU CANNOT AVOID IN LIFE: DEATH AND TAXES

~Ram

hence the question above.

I'm transferring money from my Us account to my parents account. I already pay taxes here in the US.

Anyone recently sent 50K or more and know the rules, please let me know. Thanks a lot.

injrav 11-09-2011 12:30 PM

50K means dollars or rupees
 
50K means dollars or rupees?

smuggymba 11-09-2011 12:35 PM

Quote:

Originally Posted by injrav (Post 2988358)
50K means dollars or rupees?

50,000+ dollars

nousername 11-09-2011 01:31 PM

Not $50K but recently sent $25K and no questions asked. Just paid my bank the wire transfer fee and funds were transferred.

US government has no business with what I do with my "after tax" legit money. Send it to India or burn it, it's my money and I will do what I feel like doing. The recipient will have to pay taxes based on the amount and other regulations (limit, etc.).

Also, "principle" money once taxed (in US or India) is not taxed again, only the earning on that "principle are taxed. I'm not sure what the gift limit is in India but if you are sending money under that limit the no one pays any additional tax. Sender never pays tax again.

I had good success sending money via wire transfer v/s NRI/NRE/Remit-online-Guys. Wellsfargo has some understanding with ICICI and they only charge $5/transaction and exchange rate is fair. At least I had good experience with the big bank.

smuggymba 11-09-2011 04:09 PM

Quote:

Originally Posted by nousername (Post 2988365)
Also, "principal" money once taxed (in US or India) is not taxed again.

That's the thing I want to confirm. Will 50K be a gift? How much is the limit for gift?

Any links to Indian govt website with these details.


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