Gift Of Money From Germany
My parents from germany want to transfer a larger amount of money into my bankaccount(how much I do not know since they are secretive about it)
are there any special rules for out of country "money gifts" ?
I mean as far as paying taxes on it goes ? 
[ Edited by schaetzle on Date 01/26/2004 ]
I do not believe that there are any different rules applying to money from outside the country. You may be "gifted" $11,000 per year per parent. I don't know if that satisfies your problem. I would talk to a CPA.
No tax until you are an owner. Then so much for a gift and take it from there. I wonder why they would want to move out of the EU, money is better there right now, unless they are betting that the USA will catch up with the Eu. My bet is no. When you are playing the game of the Pax Romana , you really cannot increase the worth of your currency. The trend is the other way. Sure wish it were not.
Sad but truthfull Lucius
Quote:I do not believe that there are any different rules applying to money from outside the country. You may be "gifted" $11,000 per year per parent. I don't know if that satisfies your problem. I would talk to a CPA.
BOSSinDC,
You may be gifted any amount of money the donor wishes -- tax free. There are no limits on the amount of gift money one may receive.
You may be thinking about the gift tax exemption that applies to the first $11K that an individual gifts to another individual throughout the year. When the gift amount exceeds $11K, gift taxes (if any) are paid by the donor not the recipient.
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"My parents from germany want to transfer a larger amount of money into my bankaccount...they are secretive about it"
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You got an interesting situation on your hands here. Such situation demands informed decision and I hope you know who your parents are, because those days certain dept's monitors such or similar type of "I don't know " private account money transfers, closely. My suggestion: For precise answer/s, visit http://www.irs.gov/help/index.html as well as http://www.dhs.gov and check their help section. if you do not find the applicable answers, just write them an email. They are usually helpful and would certainly find the time to answer your questions in most appropriate way.
Once you got the right answer, have your parents consider doing the same thing through a corporation. For the right amount of investment those days you can even earn the green card, if one or more are of involved investors interest.
Thank you all so much for your answers
I truly appreciate it.
I have the feeling I didnt make myself clear enough:-(
(Maybe the language barrier <IMG SRC="images/forum/smilies/icon_smile.gif">
Explanation as follows:
Lufos: The thing is that the money doesnt do me any good sitting in ****Must Reach Freshman Investor status before posting URL's***'m not doubting that the money would be better of there,but the thing is it defuses the point of me having the money to put to use here in US..I.m planning to pay of my house a bit earlier
Thank You so much though
Omega1:My parents want to make a gift of money to me not invest their money over here,I guess the only one they are investing in would be me <IMG SRC="images/forum/smilies/icon_smile.gif">
I guess the not wanting to talk about it is the German Mentality
"You eather have or don't have money but in no case talk about it"
But thanks so much for the links you send
It is most helpful
Have a great day everbody
schaetzle
[ Edited by schaetzle on Date 01/26/2004 ]
I just got of the phone with the IRS
(thanks to the link you providet)
Info as follows
Since its a gift from a foreign country,and my parents are not a citicen of the US and Im a resident,there is no limit on much they are allowed to send,I asume since the money is already taxed in germany there is an understanding that it can not be taxed twice.
The other thing is I can not invest this money here in the US,in this case I would have to file it .I was told I would have to file the interest it made during that time
Its als ok to spend it anyway one pleases
creditcards,housepayments,as long
its not sitting anywhere as in stocks,Bankaccounts etc and grows.
Hope this provides some info for the curiouse and maybe somebody that stumbles upon it
Schaetzle
My mother had to send money from Russia. I just opened an account with her name and mine, then she just put it there.
I recommend CitiBank, they have branches anywhere. She opened in Moscow and I was able to us it here.