Taxpayer is an H-1B visa holder and decided to go back to his hometown to taking care of his parents. He sold the house and received a lumpsum proceeds deposit in his BOA account. He had been working here for one and half year.
He opened a new bank account in the foreign country. He is going to wire some of his money back through the bank. His friend just moved to the States. They set up a deal. The friend is going to deposit foreign currency in his foreign bank account and he will transfer US $ into the friend's U.S. bank account. It is exchange of foreign currency. There is no re-sale for the taxpayer.
Is this transaction allowed? Do they have to exchange it through the bank? Are there any limitation on the foreign currency exchange transaction? Is it allowed or prohibited?
No cash involved.
Taxpayer is an IT engineer and prefers everything to be organized and fully-complied.
I don't have any experience on this and need your advice. Thank you!