1

I'm a US Citizen living in VA state. I have inherited property worth close to 1 million US Dollars. My father is also a US citizen living in Bangladesh. What is the proper procedure for him to send me the money to US? What are our legal and tax obligations?

Improve this question
2
  • 3
    You say that you inherited property, but are asking about transferring money... which one is it?
    – Michael
    May 10, 2017 at 19:02
  • 1
    I sense there is a Nigerian prince in this story.
    – Pete B.
    May 10, 2017 at 19:48

2 Answers 2

Reset to default
1

I have inherited property worth close to 1 million US Dollars.

1 Million USD is a large amount considering Bangladesh. Around 80 Million Taka; making someone with this amount amongst the high net worth individual. Check if this is not a scam as indicated in comments.

What is the proper procedure for him to send me the money to US?

As per Bangladesh Foreign Exchange Regulation Act; there are limitations to transfer of funds outside of Bangladesh. Read the detail guideline, section 11 Private Remittance is relevant. However your specific case is not detailed. A professional help is advised as there would be paperwork required.

What are our legal and tax obligations?

Tax obligations in US, as indicated by Michael in his answer.

Improve this answer
-1

First, you'll need to find a service that can handle transferring that amount of money, whether it's using a bank, or wire transferring service. Any major Wall Street bank (Wells Fargo, Chase, Bank of America, etc.) should be able to handle it. You could also use services such as Western Union. As for your legal and tax obligations, according to Western Union:

Individuals in Canada and the U.K. don’t have any tax considerations, unless international payments are received as income or in the form of capital gains. Only then must they report it on their income taxes, says Ilyas Patel, director at Ilyas Patel Chartered Certified Accountants based in Preston, U.K., and the director of Tax Expert, a tax advice website.

To that end, when considering their tax obligations, individuals should take care to look into the reporting requirements on foreign income or gifts ranging up to a certain amount. For example, in the U.S., the Internal Revenue Service (IRS) requires individuals who receive more than $100,000 U.S. dollars from a foreign source to report it on a Form 3520. “You may not owe taxes on the money, but it informs the IRS that you received it,” Gragg says, stressing the importance of consulting with a professional. “They’re looking for certain terrorist activities and other illegal activity.”

Due to the large sum of money your transferring, it would be in your best interest to speak with a banker (maybe even a lawyer or CPA) about this.

Improve this answer
1
  • 1
    "You could also use services such as Western Union ..". This is incorrect. Bangladesh has restrictions on outward remittances and need special permissions. Western union or such agencies cannot do outward remittances. They are allowed inward remittances.
    – Dheer
    May 11, 2017 at 3:05

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .