Gift tax for non-residents on cash transfer between US brokerage accounts

Discussion in 'Taxes and Accounting' started by DrBogdan, May 25, 2023.

  1. BMK

    BMK

    US federal tax law is potentially applicable to any person who has an account at US financial institution.
     
    #11     May 25, 2023
  2. BMK

    BMK

    I'm going to try answer the original question:

    The term cash can refer to two different things.

    Currency in your wallet, or in a briefcase or a safe, in most contexts, is considered a tangible asset.

    Money held in a deposit account at a financial institution, in most contexts, is considered an intangible asset.
     
    #12     May 25, 2023
  3. I did lots of research about this last year. Cash in bank account or cd is intangible but cash in brokerage account is tangible, and there is a transfer gift tax even for non resident alien, but in practical case, if transfer is from non alien to non alien, irs may not take action, but in theory, there is gift tax. The practical way is for op to buy ADR or t-bills, and transfer ADR or t-bill to another account, which is tax free.
     
    #13     May 25, 2023
  4. DrBogdan

    DrBogdan

    Thanks. I've heard that too. But I'm yet to find something legitimately corroborative. All I see is people referring to each other and no reference to actual court rulings. Have you managed to find something that betokens exactly how IRS would act in such cases? Like court rulings, etc. After all, pursuant to Connecticut official policy, cash is considered intangible regardless of the type of the account it is stored on.
     
    Last edited: May 26, 2023
    #14     May 26, 2023
  5. VicBee

    VicBee

    That's because you ask a technical question in a forum that has no expertise in tax or law. I suggest you reach out to a certified person (tax attorney, financial advisor, accountant,...) Then come back to the forum with an explanation that can enlighten us all.
     
    #15     May 26, 2023
  6. I did not find court ruling. US government only rakes less than a few hundred of millions from non alien gift and estate tax, very little from brokerage , most from real estate estate. Just transfer bonds. Simple and no worry.
     
    #17     May 26, 2023
  7. Anyone is using PalmPay these days? Unfortunately i didn't find any information about it on this forum, only some PalmPay reviews here. Would appreciate couple of words about the services from the members , especially those who used different once too. Can i use it actually for the international transfers too?
     
    #18     Jun 21, 2023
  8. newwurldmn

    newwurldmn

    bmk worked as a tax auditor for the IRS.

    he’s the most informed on taxes of anyone on this forum.
     
    #19     Jun 23, 2023
  9. BMK

    BMK

    I was not an IRS employee.

    I do hold a license issued by the IRS that allows me to represent taxpayers in adminstrative proceedings such as audits, appeals and collection cases. I am not a CPA.

    Certified public accountants in the USA are licensed by the states, just like doctors and lawyers.

    My license is issued by the US Department of the Treasury, and it is valid anywhere in the USA.

    I am an enrolled agent.

    https://www.irs.gov/tax-professionals/enrolled-agents/enrolled-agent-information
     
    #20     Jun 23, 2023
    virtusa and newwurldmn like this.