One important thing nobody mentioned: Even with an ITIN, as a non-resident alien, you should look into filing a 1040-NR (Non-Resident) tax return for any US-source income, including that property sale. Just having an ITIN doesn't fix everything - you still need to file the right forms. Also, if the money you're transferring from your home country was already taxed there, make sure you keep documentation proving the source. Large transfers get reported by banks via FinCEN, but that doesn't automatically make them taxable.

As someone who went through a similar situation as a non-resident, I'd strongly recommend getting that ITIN before you receive the $31,500 payment. The application process can take 6-11 weeks, so don't wait. A few key points from my experience: **On the $31,500 payment:** Yes, your US bank will likely report this to the IRS, especially if it's from a US source or if it triggers any reporting thresholds. Having an ITIN ensures proper tax identification when this gets reported. **On property sale timing:** Don't rush to sell before marriage just for tax purposes. The FIRPTA withholding (15% of gross sales price) applies regardless of when you sell. However, being married to a US citizen might give you more options for how you file and potentially better treatment of capital gains. **On international transfers:** There's no limit that makes transfers "income" - it depends on the source. Money you've already earned and paid taxes on in your home country isn't US taxable income just because you move it to a US account. Just keep good documentation showing the source of funds. **Practical tip:** Consider consulting with a tax professional who specializes in international taxation before making any major moves. The interplay between non-resident status, property ownership, and potential future residency can be complex. Get that ITIN application started now - you'll need it for the property sale anyway, and it's better to have it ready than to be scrambling later.

I think everyone's overthinking this. I've been getting Zelle payments well over the $600 threshold for years (roommates, family help, trip planning where friends send me their portion, etc) and I've never reported it. Nothing has ever happened. The IRS is looking for business income, not you and your roommates splitting the electric bill. They don't have the resources to audit millions of people over personal payment app usage. Just use common sense - if you're making actual income through Zelle (selling stuff regularly, getting paid for services), report it. If it's just money passing through your account where you don't make a profit, don't worry about it.

Just to add my perspective as someone who went through this confusion last year - the distinction everyone is making between personal and business transactions is absolutely key. I was in a very similar situation to you, Emma. I help friends with tech stuff and they reimburse me for parts through Zelle. I also coordinate group trips where people send me money for hotels and activities. My total Zelle receipts were probably around $8,000 last year. What helped me was keeping detailed records with descriptions of each transaction. When tax time came, it was clear that 99% of it was either reimbursements (where I spent my own money first) or personal transfers. The only thing I actually reported was about $400 where I sold some old computer parts I wasn't using anymore - that was actual income since it was profit. For your computer building hobby, as long as you're truly just getting reimbursed for parts at cost and not charging for labor, you're fine. The IRS understands the difference between income and reimbursement. Just keep your receipts for the parts you buy in case you ever need to show the transactions were cost reimbursements. The peace of mind is worth the simple record keeping!

Has anyone mentioned installment sales yet? When I sold my distribution business, I negotiated for 35% upfront and the rest paid over 3 years. This spread out my tax liability and actually kept me in a lower bracket each year. The buyer wasn't thrilled initially but I offered a slight discount on the total purchase price in exchange for the payment terms. Make sure to get security though - I required a lien on the business assets until full payment.

This is exactly why proper due diligence and security structures are crucial in installment sales. In my experience helping clients structure these deals, you can mitigate most of the risk through: 1. **Personal guarantees** from the buyers (especially if they're individuals or small entities) 2. **UCC liens** on all business assets until final payment 3. **Escrow arrangements** for a portion of the deferred payments 4. **Performance covenants** that require maintaining certain financial ratios 5. **Acceleration clauses** if they miss payments or breach covenants The tax benefits can be substantial - especially for someone like Mei with a $4M+ deal. Even if you discount the total price by 5-10% to get installment terms, you could still come out ahead after taxes if it keeps you in lower brackets or helps with other tax planning strategies. That said, you're absolutely right that cash upfront eliminates collection risk entirely. It really comes down to your risk tolerance, the creditworthiness of the buyers, and how much the tax savings would be worth to you. With proper legal structure though, installment sales can work well for both parties.

Another approach nobody's mentioned yet is charitable remainder trusts. I sold my software company in 2022 and put a portion of my shares into a CRT before the sale. I avoided immediate capital gains tax on that portion, got a nice charitable deduction, and still receive income from the trust for the next 20 years!

Great question about minimizing taxes on your business sale! I went through this exact situation 18 months ago with my digital marketing agency (sold for $2.1M). Here are the key strategies that saved me significant money: **Timing is everything** - I pushed my sale to January to reset my tax year and spread some income recognition. Also considered my other income sources that year to manage overall tax brackets. **Asset vs Stock Sale Structure** - This was huge for me. We structured it as an asset sale which allowed me to allocate purchase price to different assets (goodwill, customer lists, equipment, etc.) with varying tax treatments. Some were capital gains, others ordinary income, but the overall effective rate was much better. **Earnout provisions** - Part of my deal was structured as an earnout over 3 years based on performance metrics. This spread the tax liability and kept me in lower brackets each year rather than one massive hit. **State tax planning** - I actually temporarily relocated to a no-capital-gains-tax state (Nevada) for the sale year. This alone saved me about $140K in state taxes. Obviously verify this works for your situation and follow all residency requirements. Definitely get a tax attorney who specializes in business sales, not just a regular CPA. The specialized knowledge pays for itself many times over. Feel free to ask if you want more details on any of these strategies!

Don't forget to consider state taxes too! While the federal treatment might be non-taxable, Minnesota might have different rules for disability settlements. When I had a similar situation in Illinois, the federal government didn't tax my settlement but the state wanted their cut. Check with the Minnesota Department of Revenue or a local tax professional familiar with state-specific rules.

I'm dealing with a very similar situation right now with a different insurance company. One thing I learned from my attorney is that you should get a detailed breakdown of the settlement amount in writing that specifically categorizes each component - back benefits, attorney fees, any interest or penalties, and the debt forgiveness portion. This documentation will be crucial for tax purposes and also for protecting your SSDI eligibility. The categorization helps show that the bulk of the settlement is just replacement of benefits you should have received anyway, not new income. Also, regarding the trust - make sure you set that up BEFORE the settlement funds hit your personal account if possible. Having a large lump sum in your account, even temporarily, could potentially impact SSDI eligibility depending on the timing of their reviews. Some attorneys can arrange for the settlement to be paid directly into a properly structured special needs trust. The fact that your attorney mentioned it's probably not taxable is encouraging, but definitely get that professional tax opinion before the money arrives. Better to spend a few hundred on proper advice now than deal with IRS issues later.