3

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.

1 Answers1

3

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.

littleadv
  • 172,884
  • 15
  • 295
  • 479
  • To clarify, to count as a loan, and not a gift, you need to charge some reasonable interest rate. But, you can gift the interest, which should be less than the amount of the loan itself (and at some point, you can gift the remaining principal to "cancel" the loan). – chepner Oct 05 '20 at 16:03