This will certainly raise some flags on the receiving end. What is the impact on Swiss side? What type of checks will be done?
This is regular earned money. None of us are US citizens.
I may have to wire transfer about 100K to a US bank account to loan someone in the family.
I'm not an expert but if the person you're sending money to is a legal resident in the US, i.e. green card holder, they may be liable for tax on this amount they receive. Maybe if they can show a loan agreement then they may be exempt.
Where are all the tax lawyers when you need them?
U.S. Tax Guide for Aliens
It will also race some flags this end. Due to money laundering!
Well you may be right about it raising flags, but I have transfered higher sums from the UK to the States and and back again with no implications either end and have also made the same transfers from the UK to CH for the same amount again with no implications.
That does not go to say it will not happen.
I agree that a loan agreement might be a good idea and good proof of where the funds originated from.
Why dont you let me carry it over to the states for you, trust me!!
I know some Nigerian fellows who might be able to help you on this one. They also have lots of experience in transferring large sums of money into foreign accounts, I'll forward you their contact details.
Large sums of cash will bring up flags but if it's the same beneficial owner, i.e. to your own account from your own account and you can prove this, it shouldn't be a problem.
Could you split the amount into smaller sums across multiple US accounts? Might raise less flags then?
Anyone know the transfer limit that people start getting edgey?
Anything over USD 10,000 will raise flags. However, I'm not a tax accountant or anything but if you're giving someone USD 100,000 they will have to pay tax on it, as per my understanding. Not sure if that can be gotten around because it's a 'loan.'
Hmm wondering if they could buy bonds fly to the US then cash them, but I bet you will still get busted for tax.
Alternatively a trip to Antwerp maybe worth doing, buying some sparkle and playing the role of a Diamond smuggler! I reckon you may make money aswell on this, but you'd need to line up a jeweller in the US to take them off your hands.
If it's truly a loan with proper evidence (i.e., loan agreement), why would this trigger any tax? I don't believe that the loan itself would. The other party paying you interest may trigger tax obligations for you though.
I would make sure you get a US tax attorney involved just to make sure everything is well documented and you know the facts before you do this. I'm sure it would be worth your while. Random musings by those on a public forum (including those written by me) add little value unless they're written by someone with actual knowledge of the laws (which I don't have).
That's why I said if you're giving them $100,000.
Since it concerns family, the evidence required to substantiate that it is truly a loan may be a bit heavier. A proper loan agreement is the least you probably need, containing the usual conditions. And of course people need to act according to the conditions set out in this agreement.
As for taxes: in CH you pay income tax on interest received. Furthermore, afaik US charges a 20% withholding tax on interest payments. Anyway, this withholding tax is reduced to 0% under the US - CH double tax treaty. You may want to check whether you can get a (upfront) reduction to 0% of this tax at the moment of payment.
The loan is treated like an investment. From the Swiss perspective:
The capital must be shown as an asset on the wealth statement. That attracts wealth tax. Deemed interest is liable to income tax. When you discover the US perspective, do let us know.