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Tax Law (Questions About Taxes)/Foreign Wire Transfers for property purchasing

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Question
I am currently a US Non-citizen alien resident from Canada working in the US for the last 5 years.  I was looking to purchase some property however I would need to transfer some funds from my Canandian joint account (with my parents however my name is also on the account) to my US Account (roughly between $50k - $100k) on funds.

I was wondering what types of taxes I would be facing since this is towards a potential mortgage.

Any advice would be greatly appreciated.

Answer
Dear Jimmy,

You would not be facing any taxes on this transfer.

If you were a permanent resident you would need to have those funds disclosed

on the annual Foreign Bank account statements (FBAR).

See http://www.taxesforexpats.com/expat-tax-advice/offshore-tax-fbar.html#a2 for details.

Working in the U.S. on a temporary visa does not make you a U.S. person responsible for FBAR filing.

However, you may need to explain the details of the foreign bank transaction to the mortgage underwriter to to make sure they approve foreign sourced funds as qualifying for mortgage down payment.

Hope this helps.
I.J.Zemelman

Tax Law (Questions About Taxes)

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IJ Zemelman, EA MBA

Expertise

I am an IRS-authorized EA and principal of a Tax Preparation firm focusing on U.S. Expatriates. We specialize in all tax issues faced by American citizens living abroad - such as foreign earned income, tax treaties, foreign spouse, etc. Visit our website - www.TaxesForExpats.com - for more information.

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18 years professional tax experience, 12 with expatriate taxes.

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Expatriate tax information on www.TaxesForExpats.com

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MBA from Zicklin School Of Business, IRS Enrolled Agent

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