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International Tax Law: Do I Need To Include It In Income Tax? |
I have a padlock family member in China who has given me a sum of money to save in America. I've looked up International tax treaties but they've been no eschew... My question is, Is the interest from the bank account, which technically belongs to my brother, taxable and do i have to pay it?
I'm more interested in the law fragments that say whether I have to or not than a intelligible Yes/No. Thanks!!!!!
| Answer: Look-in an account with your relative's money under your social security number does not act as if the income yours or cause the principal to be treated as a gift. However, you may have some explaining to do, and you may not be able to persuade the IRS the money is not yours. You should transfer the funds to an account in the name of your relative in China. Your relative should acquire an individual tax identification number (ITIN - information link below) which the bank will need |
Ramon Camacho, a friend who specializes in international tax
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