Investor · Howey In The Hills, FL · Member since 2015 · 95 posts · 37 votes
Need help from someone who has some knowledge of international money transfers.
I am a US citizen and I work in Saudi Arabia, which as you may know is part of the tumultuous Middle East. Lots of sand and jerks dressed in black making ugly Youtube videos out here. Anyways, I'm looking at the task of transferring my money back to the US so it can be used for REI. I know that large cash transfers from the Middle East get flagged sometimes, but I don't know the exact criteria for this. I have a good friend who works out here with me and he is fronting me a bunch of capital to help me accelerate my acquisition of properties, so I'm worried this will throw up a red flag somewhere.
Does anyone know how to transfer all my cash back to my US bank without freaking out Homeland Security or getting me audited by the IRS?
Realtor · Keystone Heights, FL · Member since 2015 · 340 posts · 118 votes
10y
As long as you and your friends are not terrorists, don't sweat it. ANY transfer over $3,000 (US or Internationally based) requires a US Bank to file a SAR form. Your account might be looked at. If so, it will be transparent to you.
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
10y
The best way to avoid suspicion is to wire the money to a title company for a transaction. That being said there are often delays on international wires and you should send the wire at least 48 - 72 hours before any deadline.
They will absolutely report it to the IRS.
When they do it, it should be clear to the IRS that it a US citizen repatriating money for a real estate purchase.
Of course repatriating a large amount more than you claim as income, could raise a red flag.
There is a very important item you did not mention. Is the person that is "fronting" you the money a US citizen?
If not... stop before you do anything else and get legal advice both in the US and Saudi Arabia.
Investor · Howey In The Hills, FL · Member since 2015 · 95 posts · 37 votes
10y
Thanks for the extra info. Yes, the person giving me the money is a US citizen. Long time friend of mine who helped me get into overseas contracting. Unfortunately, I can't wire the money directly from my saudi account to the title company for a sale, because my lender always wants the money to come from a US bank. It's been pretty annoying, but multiple other lenders I talked to wouldn't even work with me on account of the international situation.