Is the money taxable in USA, when I get my loan back from someone I lend my money overseas?

If you do not have any loan documents, the money you receive will be treated as a Gift. If the money you receive is in the form of a gift, it will be 100% tax free, if it does not exceed the annual exclusion limit. You are not subjected to any taxes but you are required to report the money to the IRS if it is more than USD100,000, or received any interest from the loan or received from a non resident.

If you have the loan document, US taxes on the interest will be applicable even if there is no interest received.

You may be subjected to gift tax in the US.

Discuss with your tax advisor or consult a CPA or tax attorney for any tax related questions.

Most Viewed Answers

There is absolutely no limit of sending money to India, provided you pay the required taxes. No limit on daily and monthly transaction. only money sending have limit for sending amount for indivi…

The legal limit to carry cash currency in US Dollars from India to USA is USD 3000 per person per trip. However, you can carry up to US $10,000 in form of currency notes, Travelers check, etc. wi…

  Import: Currency Regulations in India     Foreign Currency - There is no limit to bring foreign exchange in India from the US. However, the aggregate value of fore…

Related Articles

Are Travelers Checks Still Used Today to Carry Currency Overseas?

Thinking about using travelers checks on your next trip abroad? Here's what you should know about purchasing, cashing, and using travele…

Effect of Currency Volatility on Remittances

According to the World Bank, remittances are now the second largest resource inflow for developing countries behind foreign direct investmen…

Heard about Zenbanx? An Innovative Way to Send Money Overseas

Zenbanx has taken hold of the fintech reins and created a mobile, global and versatile financial service by offering a multi currency accoun…

Go Mobile

Get the Best Exchange Rates, Important Remittance Information and
Special Promotion Alerts on the go! Download Our Mobile App on your Smartphone or Smartwatch.

google play apple app store