Discussion:NRA to NRA gift

Facts:

1. H, is a NRA, married to W, also an NRA .(Non-Treaty domiciled in community)
2. H and W own a joint bank account in the State of NYK with Rights of Survival.
3. H and W own a joint broker account in the State of NYK with right of survival
4. H is the sole contributor to the NYK bank account by way of his employer directly transfering the funds to the Joint account (employment not connected with a trade/business in the US).
5. H is the sole contributor to the NYK broker account by way of receiving US shares from his employer(employment not connected with a trade/business in the US)

Questions :

1. Would H’s contribution to the joint bank account be defined as "intangible assets" ?
2. Would H’s contribution to the joint broker account be defined as intangible asset ?
3. Are there any gift tax implications on the incoming funds/shares ?
4. Are there any gift tax implications if the couple wire funds (not shares)from their joint US bank or joint US Broker to a joint account outside the US ?
5. Are there any gift tax implications if the couple wire funds to separate accounts outside the US.

Thank you . Paris

Contributions to the accounts aren't gifts. Withdrawals to the wife (with the right to keep them) are. Wire transfers shouldn't involve any tangible personal property and so won't be subject to U.S. gift tax.

To me it just sounds like a transfer from one acct to another acct since both are in the same names. I would not do over $10,000. at a time.

I'm also not familiar with NRA issues.

1.Yes-I do refer to US State of New York. Reason I mentioned New York is that there is a local law (NY Banking law 675) which presumes 50%/50% ownership on receipt of funds (I think this is the only state with such law) . I also believe IRC code 25.2523(i)-2 refers to repealed code 2515 which defines a 50%/50% of the funds in a joint account when one spouse in non-citizen. 2.Both account holers are Non Residents/Non Citizens. My thought was that this would be deemed as a transfer of intangible property (50% of the funds on deposit or 50% of the shares from employment)-Any thoughts ?

Blrgcpa-can you please explain your comments re transfer from account to account and the $10,000 ?

I have personally never though of a bank account as an intangible asset. In the past, I had always assumed that I could turn that money into cold hard cash, and throw it around my living room and waller in it if I wanted to.

However, with the present banking crisis, you might be onto something here. I mean, if you look at your bank statement, your bank account is nothing but numbers on a page backed up by a blip on a hardrive at the bank, backed up by the US Govt. That does appear to approach intangible territory; to the wise man, but perhaps not to the tax man.

Would your answer be different if Donor-spouse was US citizen and Donee was non-US Citizen spouse ?

H transfers funds to joint account with US bank that is based in London (a)funds less than USD 10,000 (b) funds more than USD 10,000.

a - Would W need to report transfer? Tax implications for W? b - If W moves back to US and H remains overseas (no visit to USA), is W limited to funds that can be transferred?