Foreign121
Oct 2, 2009, 04:46 PM
Hi
We (my wife and I) came to the US in 2001 as students (F1 visa). We got our green cards in 2008 but we have filed our taxes as resident since 2006. We have an apartment in our home country, which was our primary resident, and we want to sell it and transfer the money to the US and use it as a down payment to buy a house here. The price of the house is less than $250K. Here are my questions:
1- Can we we use Section 121 and exclude the capital gain from our tax return?
2- Do we have to report it on our tax return if we can use Section 121?
3- The person who wants to buy our apartment is our relative and he will pay the money gradually. He will pay $150K this year and the rest in the next year when the title will be transferred to him. We want to transfer the first payment to our bank account in the US. How can we justify that the money is from the sale?
Any help in this regard would be highly appreciated.
We (my wife and I) came to the US in 2001 as students (F1 visa). We got our green cards in 2008 but we have filed our taxes as resident since 2006. We have an apartment in our home country, which was our primary resident, and we want to sell it and transfer the money to the US and use it as a down payment to buy a house here. The price of the house is less than $250K. Here are my questions:
1- Can we we use Section 121 and exclude the capital gain from our tax return?
2- Do we have to report it on our tax return if we can use Section 121?
3- The person who wants to buy our apartment is our relative and he will pay the money gradually. He will pay $150K this year and the rest in the next year when the title will be transferred to him. We want to transfer the first payment to our bank account in the US. How can we justify that the money is from the sale?
Any help in this regard would be highly appreciated.