Payments from foreign countries

WHY is he receiving this money? Gift? Loan? Proceeds of a sale?

Assuming this is a gift, there is no taxable consequence. (IRS Publication 525). There is some form to be filed reporting the foreign transfer. I've seen it buried someplace in IRS instructions for something (Schedule B?), but being lazy I'd just call my banker, who should know off the top of her head.

-- Phil Marti Clarksburg, MD

Before we get into the taxable event, let us actually know the real event why your client is receiving the $10,000. If your client is receiving the money because of business activity, the event will be different than such things as investment activity, inheritance, repatriation of funds, etc.. Also, are you asking from the point of the receiving country (presumably the United States), the receiving state (California is different than Florida, though that goes without saying), or the country in Asia where the funds are from? If you ask a generalized question, the only answer left, like now, is "It depends." Get more specific and you'll get a better answer.

if it is a gift - nothing

if it is for services performed or selling a product - it is income ___________________________________

-----> real address on hobokeni or hobokenx

No one can say based on what you ask. To form any cogent opinion one would need to know the nature of the payment and how it arose. gift? payment for personal services? payment for merchandise? inheritance?

ChEAr$, Harlan Lunsford, EA n LA