US Bank Transfers by NRAs: Taxable or Not?

Offshore Tax with HTJ.tax · Apr 19, 2026 · 1m

This is where things get counterintuitive.👉 Cash is tangible… but bank deposits are not.And that distinction makes all the difference.💵 1️⃣ The Core RuleUnder Internal Revenue Code §2501(a)(2):• Non-resident aliens (NRAs) are subject to U.S. gift tax only on:U.S.-situs real propertyTangible personal property👉 Intangible property is excluded🏦 2️⃣ Bank Deposits = Intangible PropertyFor U.S. gift tax purposes:• Bank deposits are classified as intangible property👉 This applies even when:• The account is held in a U.S. bank🌍 3️⃣ Practical ResultIf an NRA transfers funds via:• A U.S. bank account…