Transferring money

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thisisreallycomplicated
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Re: Transferring money

Post by thisisreallycomplicated » Tue Aug 14, 2018 3:07 am

eeuunikkeiexpat wrote:
Mon Aug 13, 2018 11:10 pm
Where is my money stored?

All money in your TransferWise borderless account is stored and safeguarded securely in our bank accounts in the UK or USA depending on your country of residence on your profile.

If your profile address is in the US, your money will be stored in our accounts in the USA. If your profile address is in Australia, your money is stored in an account there. If your profile address is in Singapore, your money is stored on our accounts in Singapore and if your profile address is anywhere else, your money is stored in our accounts in the UK.
https://transferwise.com/help/article/2 ... ney-stored
Thanks. So if you live in Chile you'd have an account in the UK, and it would be subject to FBAR reporting. And I have no idea what kind of insurance (if any) it would have. I guess it's not a big deal, since anything that gets transfered to a Chilean account could need an FBAR anyway. I'll just need to learn more about FBAR reporting details.

The regular transferwise transfers (without using a borderless account) seem like a good thing for transfers that are too big for ATM's, since the total cost (exchange rate + fees) is under 1.5%. And the best I can get through the ATM's is about 1.5%. The main problems I see are:
1. They're subject to FBAR reporting, like any other transfer to a Chilean account
2. I'm not sure if they're covered by the FDIC during the entire transfer. So there may be slightly more risk involved.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

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eeuunikkeiexpat
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Re: Transferring money

Post by eeuunikkeiexpat » Tue Aug 14, 2018 11:36 am

Remember, it all starts with Schedule B which just asks the question if you have ANY financial account regardless of amount.

Then, if you meet the $10,000+ requirement you must file the separate FBAR online to FINCEN.

Then there is FATCA if you fall within the requirements to file.

Then there are the new regs if you own a business abroad.
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Just a thought, since you are a US person and thus subject to worldwide taxation forever even if you moved to the dark side of the moon, why not setup your Transferwise account as a US resident? Or does Transferwise not permit that for some reason?
Generally, just a SPAM KILLER. You are on your own in this forum. My personal mission here is done.

BUT when necessary, by way of ridicule and truth revelation we shalt do war.

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papageno
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Re: Transferring money

Post by papageno » Tue Aug 14, 2018 12:31 pm

eeuunikkeiexpat wrote:
Tue Aug 14, 2018 11:36 am
Remember, it all starts with Schedule B which just asks the question if you have ANY financial account regardless of amount.

Then, if you meet the $10,000 requirement you must file the separate FBAR online to FINCEN.

Then there is FATCA if you fall within the requirements to file.

Then there are the new regs if you own a business abroad.
-----------------
-----------------
Just a thought, since you are a US person and thus subject to worldwide taxation forever even if you moved to the dark side of the moon, why not setup your Transferwise account as a US resident? Or does Transferwise not permit that for some reason?
I am currently in Puerto Varas, paying my monthly rent through aTransferwise account I set up prior to leaving the US (in my case, California. Further, part of the process of the relocation involved downloading the Transferwise app to my smartphone and switching the contact/recipient information to the phone. I had to use their help center, but the lady on the other end couldn't have been nicer, (British, I think) and everything went through without a hitch.
As I remember, I was tipped off toTransferwise by either you or SpaceCat. In any case, I've been using it for about a year and have no complaints.
As the amount transferred has to date in any one transaction has not exceeded $1,000 much less $10000, I'm not concerned about FATCA or FBAR.

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eeuunikkeiexpat
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Re: Transferring money

Post by eeuunikkeiexpat » Tue Aug 14, 2018 12:51 pm

Clarification --- FBAR requirement kicks in when the SUM OF ALL foreign financial accounts exceeded even for a second anytime during the year a fraction of a cent over $10,000 USD. Has nothing to do with the KYC paperwork the banks do "on your behalf" or their "suspicious" reports when you do transactions of whatever amount.

It would be logical not go afoul of these idiotic regs as it is something that they can bring against and entrap you in the future if you get on their hate target radar for some reason.

So I make damn sure Schedule B and FIN 114 info is reported and match. Those with foreign trusts and other gimmicks have to watch out for FATCA regs and those with businesses abroad, the newly passed regs.
Generally, just a SPAM KILLER. You are on your own in this forum. My personal mission here is done.

BUT when necessary, by way of ridicule and truth revelation we shalt do war.

--eeuunikkeiexpat

papageno
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Re: Transferring money

Post by papageno » Tue Aug 14, 2018 3:07 pm

eeuunikkeiexpat wrote:
Tue Aug 14, 2018 12:51 pm
Clarification --- FBAR requirement kicks in when the SUM OF ALL foreign financial accounts exceeded even for a second anytime during the year a fraction of a cent over $10,000 USD. Has nothing to do with the KYC paperwork the banks do "on your behalf" or their "suspicious" reports when you do transactions of whatever amount.

It would be logical not go afoul of these idiotic regs as it is something that they can bring against and entrap you in the future if you get on their hate target radar for some reason.

So I make damn sure Schedule B and FIN 114 info is reported and match. Those with foreign trusts and other gimmicks have to watch out for FATCA regs and those with businesses abroad, the newly passed regs.
also, if you fall sufficiently far behind in what you owe (which isn't difficult, once the IRS starts piling on the penalties), they can now yank your passport. And your idyllic life outside the Empire vanishes with a -poof- right before your eyes. Welcome home, comrade serf!

thisisreallycomplicated
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Re: Transferring money

Post by thisisreallycomplicated » Tue Aug 14, 2018 3:35 pm

eeuunikkeiexpat wrote:
Tue Aug 14, 2018 11:36 am
Just a thought, since you are a US person and thus subject to worldwide taxation forever even if you moved to the dark side of the moon, why not setup your Transferwise account as a US resident? Or does Transferwise not permit that for some reason?
Good idea, I'll look into that
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

thisisreallycomplicated
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Re: Transferring money

Post by thisisreallycomplicated » Tue Aug 14, 2018 3:41 pm

eeuunikkeiexpat wrote:
Tue Aug 14, 2018 12:51 pm
So I make damn sure Schedule B and FIN 114 info is reported and match. Those with foreign trusts and other gimmicks have to watch out for FATCA regs and those with businesses abroad, the newly passed regs.
You also have to be careful with an AFP.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

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eeuunikkeiexpat
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Re: Transferring money

Post by eeuunikkeiexpat » Tue Aug 14, 2018 3:51 pm

Aren't AFP's (gov regulated pension account thus not a private trust or other contraption) covered under separate tax laws as there are reciprocal deals with SSA?
Generally, just a SPAM KILLER. You are on your own in this forum. My personal mission here is done.

BUT when necessary, by way of ridicule and truth revelation we shalt do war.

--eeuunikkeiexpat

thisisreallycomplicated
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Re: Transferring money

Post by thisisreallycomplicated » Tue Aug 14, 2018 5:15 pm

eeuunikkeiexpat wrote:
Tue Aug 14, 2018 3:51 pm
Aren't AFP's (gov regulated pension account thus not a private trust or other contraption) covered under separate tax laws as there are reciprocal deals with SSA?
This is a link to discussion where a guy says it's a PFIC (whatever that is):
http://www.taxalmanac.org/index.php/Dis ... he_UK.html

This is from his post (Dhtax, 2nd post from the end)
3) In Chile the retirement system is privatized, so both SE and salaried people buy shares in an "AFP", which is essentially a restricted mutual fund. This means they need to file an FBAR and report the investment as a PFIC
It's an old post, and I think there was a clarification by the IRS since then, for something to do with pensions. But I don't know if it's for the same thing. If I can find it again, I'll post a link.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

thisisreallycomplicated
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Re: Transferring money

Post by thisisreallycomplicated » Tue Aug 14, 2018 5:37 pm

This is what I was looking at:
https://www.irs.gov/businesses/comparis ... quirements

The last thing they list is:
‘Social Security’- type program benefits provided by a foreign government
But I don't know if that includes an AFP account.

And then there's something on this page, about "Exceptions to the Reporting Requirement":
https://www.irs.gov/businesses/small-bu ... ounts-fbar
Some look like they might apply, but I don't know for sure. It also says:
Review the FBAR instructions for more information on the reporting requirement and on the exceptions to the reporting requirement.
But I haven't done that yet.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

papageno
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Re: Transferring money

Post by papageno » Tue Aug 14, 2018 5:50 pm

Four words: get qualified professional help. This is no game for amateurs.

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eeuunikkeiexpat
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Re: Transferring money

Post by eeuunikkeiexpat » Tue Aug 14, 2018 6:31 pm

How friggin' confusing, thank God I have no AFP, many years of paying into the US SS scam was enough for me. Also, looking back decades, it was good I was not rich enough to have jumped on the Sovereign Society/International Living/Escape Artist bandwagon of international trusts, corps and other exotic schemes that have since been neutered and prosecuted by the Empire's tax system. KISS and blend in with the poor sheep is best.
Generally, just a SPAM KILLER. You are on your own in this forum. My personal mission here is done.

BUT when necessary, by way of ridicule and truth revelation we shalt do war.

--eeuunikkeiexpat

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