1

I'm in a similar situation to this: Tax consequences of forwarding an international wire

I've read the answer and comments to that question. However, transferring through Bitcoin is not an option. Gifting, on the other hand, may be subject to a gift tax.

If a U.S. Person were to receive the wire transfer for me, and then immediately transfer the money to me, is there another way to explain the transfer to IRS (other than treating it as a gift to me)? I do not want to use any of the receiver's lifetime exemption to gift tax.

  • 3
    Good luck finding anyone willing to do that for you, given that it is the basis of so many scams, may be subject to scrutiny for possible criminal activity, etc... But theoretically simply passing money through isn't subject to tax, if properly documented. – keshlam Aug 19 '16 at 13:49
2

Gift tax is not an issue here.

If a U.S. Person were to receive the wire transfer for me, and then immediately transfer the money to me

This is a classic money laundering/scamming technique. You and your friend may end up talking to the FBI, not the IRS.

  • Thanks for your answer! I'm able to prove that the money that I want to transfer is obtained by legal means (for example, sale of real estate, and that the principle for buying the real estate is legal as well). I'm also able to keep a trail of the money transfers, starting from my foreign account, to the foreign friend, then the US friend, and finally to my own account in US. I understand these transfers may raise some flags, but are they legal? Again, this is simply to work around the foreign country's unwritten rule (the regulation, afaik, is more relaxed and I won't exceed that limit). – user47601 Aug 21 '16 at 17:16

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.