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I would like to bring in $150,000 from my bank in the Philippines to another bank here in the US. This money is from a lot I sold which was given to me (under my name) by my dad who has already passed away. All Philippine taxes are paid. I am Filipino who became a US citizen in 1992. Can I transfer this money legally via my Philippine bank and my US bank? Will I be taxed even if this property was mine and not related to income? I want to use the money to invest and also as a down payment to buy a house. Thanks.

  • Assuming that your father passed away after 1992 (when you became a US citizen), and thus the sale of the inherited property occurred while you were a US citizen, did you report the capital gains on your US income tax return? US citizens are required to report their world-wide income (including capital gains) on their US income tax return and pay the applicable taxes thereon to the US, but they can get credit for the taxes paid to other countries. So, is the money that you wish to transfer over undeclared income as far as the US is concerned? – Dilip Sarwate Feb 2 '16 at 15:57
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Of course you can transfer it, and it will be legal. There's no taxes on transferring your own money.

There's income tax on gains you realized by selling the property, but that is money you already owe, it doesn't matter where the proceeds are. It also doesn't matter how you acquired the property (except for figuring out your basis). What matters is that you had gains, and these gains are taxable in the US.

You need to figure out the value of the property when your father bought it, and that is your basis. The difference between what you sold it for and that basis is your taxable gain, and you already owe taxes on that gain.

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  • Do you have some idea of how much tax I need to pay, for the gains. 10% 25%,35%, or more? Thanks. – Reb Jan 26 '16 at 5:12
  • @Rob it depends on your personal circumstances, the type of transaction, the type of property, your other income, etc etc – littleadv Jan 26 '16 at 6:40
  • Consult a local tax specialist – William Dunne Jan 26 '16 at 8:55
  • There should also be some relief under DTAA irs.gov/pub/irs-trty/philip.pdf – Dheer Jan 26 '16 at 10:03
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    @Reb I'm sorry, you seem to be changing the story. I suggest you talk to an attorney, preferably a good one, who'd explain to you that gift and inheritance cannot both be true. – littleadv Jan 29 '16 at 5:58

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