maxalto
Nov 28, 2012, 02:20 PM
Hey everyone,
I'm a Russian-American (with Russian residency) owner of an apt in Moscow that I'd like to sell soon.
If I understand this correctly, because I've owned this apartment for over 3 years, I do not need to pay taxes in Russia (since I am a tax paying resident).
This is where as they say "the plot thickens". I need to sell the apt and transfer the funds to the U.S. The problem is that the apt was purchased from a family friend who requested that the documented purchase price be below 1 mil roubles (to avoid paying taxes in Russia). Because the official purchase price of the apt. was well below the market price, I am afraid the IRS would tax the difference between the documented purchase price, and the sale price (which pretty much amounts to 97% of property value).
I was wondering if any of you know how to deal with this. Alternatively, if you know of a good attorney who can offer legal advice here, please let me know.
I'm a Russian-American (with Russian residency) owner of an apt in Moscow that I'd like to sell soon.
If I understand this correctly, because I've owned this apartment for over 3 years, I do not need to pay taxes in Russia (since I am a tax paying resident).
This is where as they say "the plot thickens". I need to sell the apt and transfer the funds to the U.S. The problem is that the apt was purchased from a family friend who requested that the documented purchase price be below 1 mil roubles (to avoid paying taxes in Russia). Because the official purchase price of the apt. was well below the market price, I am afraid the IRS would tax the difference between the documented purchase price, and the sale price (which pretty much amounts to 97% of property value).
I was wondering if any of you know how to deal with this. Alternatively, if you know of a good attorney who can offer legal advice here, please let me know.