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Tax Implication of Money Transfer from Iran

Disclaimer: The following is intended for general information only and not legal or tax advice.

Zaher Fallahi, Attorney At Law, Certified Public Accountant (CPA), focuses on Office of Foreign Assets Control (OFAC) Regulations regarding Iran, U.S. International Tax, Undisclosed Offshore Accounts and Foreign Gifts, and represents OFAC and Tax clients nationwide. Toll Free 1-(877) 687-7558 telephone appointments are available.

Tax Implication of Money Transfer from Iran

1- Taxation of Gift from Iran

Gift is an asset received for free from a live person. If the gift is in the form of cash, the recipient is required to report it in the U.S. as “receipt of gift from a non-resident alien” if it exceeds $100,000 per calendar year. Recipients of non-cash gifts are required to report the assets’ fair market value exceeding $100,000 per calendar year. Regardless of the form, foreign gifts are tax free in the U.S.

Note. If the donor is a U.S. person, seek advice from OFAC and international tax attorney before transferring the money.

2- Taxation 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 per calendar year. For non-cash inheritance, the beneficiaries must report their fair market value if the mounts exceed $100,000 per calendar year. Both cash and non-cash foreign inheritance is free from U.S. taxes.

Note. If the decedent was a U.S. person, seek advice from OFAC and international tax attorney before transferring the money.

3- Taxation Non-Commercial Property Sold in Iran

Whether a property is acquired (by purchase, construction, inheritance or gift) before or after becoming a U.S person, its sale is subject to the U.S. taxation. Therefore, U.S owners of such properties are required to include the sale of those properties 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, subject to exceptions, and for others are their adjusted bases. Sale of inherited property is tax free if sold when 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), are subject to U.S. tax law. Be extra cautious, these dispositions and closing bank accounts in Iran may require OFAC specific license, entering OFAC Voluntary Self-Disclosure (VSD) and Offshore Voluntary Disclosure Practice (OVDP).   

We have successfully assisted many clients with their transfer of money from Iranian and other OFAC transactions.

Zaher Fallahi, Attorney, has been rated 10 out of 10 by Avvo.

Zaher Fallahi, tax attorney, has been named a Top Tax Attorney.

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Contact information:

(877) 687-7558 Nationwide Toll Free

(310) 719-1040 (Los Angeles)

(714) 546-4272 (Orange County)

E-mail taxattorney@zfcpa.com