# US expat tax and foreign bank account deadlines



## SeekerUSA (Apr 3, 2011)

Hello,
Can anyone advise on the new tax laws that come into effect in June regarding off shore accounts.
We will be selling our home in Europe in order to move to the USA. It was our intention to leave some capital on a offshore account. If I declare these funds as the sale proceeds of our home will I have to pay taxes on this capital in the US.
Alternatively If I transferred the total amount to USA which would exceed the $10,000 am I liable for any taxes on these funds in the US.

Hope some one can help.


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## Bevdeforges (Nov 16, 2007)

Haven't heard of a change in the US requirements - but generally you have to report all foreign (i.e. non-US) accounts and investments as a "US person" (i.e. US citizen or resident). So if you sell your home in Europe before you move to the US, the proceeds from the sale do not affect your income tax return. The existence of (and high balance in the account for the year) needs to be disclosed to the US Treasury dept. by June 30th of the following year. But the form you use is only to report the accounts.

In future, you would have to report any interest paid on the funds in your foreign bank accounts - but you can take a tax credit for taxes already paid on that interest to the country where the funds are on deposit.
Cheers,
Bev


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## SeekerUSA (Apr 3, 2011)

Bevdeforges said:


> Haven't heard of a change in the US requirements - but generally you have to report all foreign (i.e. non-US) accounts and investments as a "US person" (i.e. US citizen or resident). So if you sell your home in Europe before you move to the US, the proceeds from the sale do not affect your income tax return. The existence of (and high balance in the account for the year) needs to be disclosed to the US Treasury dept. by June 30th of the following year. But the form you use is only to report the accounts.
> 
> In future, you would have to report any interest paid on the funds in your foreign bank accounts - but you can take a tax credit for taxes already paid on that interest to the country where the funds are on deposit.
> Cheers,
> Bev


Many thanks for your help.


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