Transferring money from foreign bank account

[oceanlovin'ea]

Client just called me and wanted to know what would the tax consequences be for him to transfer the money he has in a bank in Portugal to a bank here in U.S. He sold a house in Portugal many years ago and put the money in a bank there.

Oops! I missed that one! Never knew he had money in a foreign bank account.

I told him I didn't think it would have any effect. It wasn't money earned. He would just be transferring from one bank to another.

Is there something I am missing here? Besides not doing the TD F90-22.1 that I should have been doing each year.

Thanks

Linda

[DaveO]

Gain on Currency

If there is a gain on the currency, which there would be if it's a Euro, then it may be subject to tax as a capital gain. Failure to file the TD F90-22.1 can bring a hefty fine, $500,000 I think.

[erchess]

Did he properly report

the sale of his home in Portugal on his US Taxes for the year of sale?

[Kram BergGold]

Disagree with Dave O

If he moves 140E to his US bank which makes for a $100 deposit there is no gain or loss. I have seen a foreign bond be sold which due to currency fluctuation resulted in a huge gain. But moving money is not the same as selling a bond.
I know there is a form to file if a foreign person gifts $100k or more to a US citizen. My guess is there is nothing to file when moving your own money from a foreign acct to a US acct.