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Tax Implication of Money Transfer from Iran

Disclaimer: Iran OFAC license data below is for general information, not legal advice.

Zaher Fallahi, Iran OFAC License Attorney, CPA, assists Iran OFAC license clients with obtaining Iran OFAC licenses, money transfer from Iran pursuant to Iran OFAC License, taxation of Iran OFAC license transactions, Iran OFAC license problems with OFAC, Iran OFAC license Voluntary-Self Disclosure, IRS Audit, Cryptocurrency Tax, and Foreign Gifts. Consultation is available via toll free 1-(877) 687-7558.

Harvard Law School

Zaher Fallahi, Iran OFAC License Attorney, CPA, has completed “Negotiation and Leadership”, and “Leveraging the Power of Emotions as You Negotiate” Certificate Programs at Harvard Law School.

1- Taxation Implication of Receipt of Gift from Iran

Gift is something of value received from a living person without consideration. If the gift is in the form of cash, the recipient is required to report it as “receipt of gift or bequest from a non-resident alien” if the amount exceeds $100,000 per calendar year. Recipients of non-cash gifts are required to report the assets’ fair market value if it exceeds $100,000 per calendar year. Generally, foreign gifts are tax free in the U.S.

If the donors are U.S. persons living in Iran, consult an Iran OFAC license attorney and an international tax attorney, because the donors more likely have Iran OFAC license violations, and U.S. tax and FBAR violations, that may implicate them and you.

2- Taxation of Receipt of Inheritance from Iran

Inheritance is an asset received for free from a decedent’s estate. If inheritance is in the form of cash, the beneficiary is required to report it in the U.S. as “receipt of inheritance from a non-resident alien” if the amount exceeds $100,000. For non-cash inheritance, the beneficiaries must report their fair market value if it exceeds $100,000. Both cash and non-cash foreign inheritance is free from U.S. taxation.

If the bequests (inheritances) are estates of U.S. persons who used to live in Iran, consult an Iran OFAC license attorney and an international tax attorney, because the estates of decedents more likely have Iran OFAC license violations, and U.S. tax and FBAR violations, that may implicate the estates and you.

3- Taxation Non-Commercial Property Sold in Iran

Regardless of whether a property is acquired by purchase, construction, inheritance, or gift, before or after becoming a U.S person, its sale is subject to U.S. taxation. Therefore, U.S owners of such properties are required to include those sales in their U.S tax returns in the year of disposition. The basis for an inheritance is its fair market value at the decedent’s death. The basis for a gift is the donor’s carryover basis. The basis for a property acquired by purchase or construction is its cost. Sale of inherited property may be tax free if sold at the time inherited.  

4- Taxation of Sale of Commercial Assets and Closing Bank Accounts in Iran

Disposition of businesses, rental properties, financial assets (stocks, bonds, mutual funds, etc.), are subject to U.S. tax law. These dispositions and closing bank accounts in Iran requires Iran OFAC specific license, entering OFAC Voluntary Self-Disclosure (VSD) and IRS Voluntary Disclosure Practice (VDP) requires consultation with an international tax attorney.  

Zaher Fallahi, Iran OFAC License Attorney, CPA, assists Iran OFAC license clients with obtaining Iran OFAC licenses, money transfer from Iran pursuant to Iran OFAC License, taxation of Iran OFAC license transactions, Iran OFAC license problems with OFAC, Iran OFAC license Voluntary-Self Disclosure, IRS Audit, Cryptocurrency Tax, and Foreign Gifts. Consultation is available via toll free 1-(877) 687-7558, (310) 719-1040 (Los Angeles), (714) 546-4272 (Orange County), email: taxattorney@zfcpa.com