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I am a Non-Resident Indian (NRI) and want to send approx $10,000 as a loan to my father's account in India as a contribution for a new home purchase. How do I set this up as a loan so if he wants to return this money to me I can get it in $$ without any tax implications here in the US when I get it back?

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    If it was inside the US, I'd suggest looking up "family loans". Basically, as long as you set a specific duration for the loan, keep the correct records, and charge at least the IRS's minimal interest rate for the term of that loan (or more accurately, as long as you pay taxes on at least the minimal interest rate for the term of that loan), it's a fairly straightforward process. But I have no idea whether or how the international aspect of your situation will affect this. – keshlam Sep 16 '14 at 4:54
  • The easy part is getting the money (INR equivalent of $10K (in US dollars?) to India and your father. The harder part will be getting the money back (in US dollars) when your father repays the loan, and especially if, as is most likely, he repays the amount in INR. – Dilip Sarwate Sep 16 '14 at 18:40
  • Thanks for response, yes I am needing help on the international aspect, like how do I bring back $$ when repaid in rupees from India. – user20335 Sep 17 '14 at 4:05
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You do not need to set this up as a loan. Try finding an Indian student. He is eligible to get cash (using a travel card, may be) from India tax-free. As long as it doesn't exceed the i-20 amount, he will not have any problems. Since, $10,000 is very small amount, the student shouldn't be having any problem.

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