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US Citizen sending money overseas

Personal Finance & Money Asked by user22125 on December 18, 2020

I would like to send money to my family back home to help them purchase home. And I have a few questions to this regard:

  1. Is there a limit on how much I can send? Can I send $100K plus?
  2. What is the most appropriate way to send money – international wire? Is there international-wire limit restrictions I need to be aware of?
  3. Is there any tax obligation should I be aware of when sending money home?
  4. If my family can return my money back in future, great, if not I really don’t care, but when (if) I get my money back, will I have to pay taxes on bringing my own money back into US?
  5. Is there anything else do I need to be aware of?

fyi, my family isn’t US citizens.

Thanks.

One Answer

Is there a limit on how much I can send? Can I send $100K plus?

No. Yes.

What is the most appropriate way to send money - international wire? Is there international-wire limit restrictions I need to be aware of?

Yes. No.

Is there any tax obligation should I be aware of when sending money home?

If you're a US tax resident (which, as a US citizen, you are), you should be aware of gift tax rules. You'll probably want to talk to a licensed tax adviser (EA/CPA licensed in your state) and/or attorney, to understand the ramifications in full.

If my family can return my money back in future, great, if not I really don't care, but when (if) I get my money back, will I have to pay taxes on bringing my own money back into US?

No. But if you're giving it as a loan - you'll get paid interest which is taxable income to you.

Is there anything else do I need to be aware of?

The rules of the country which you're sending the money to.

Answered by littleadv on December 18, 2020

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