[Zaid Bunni]

I am employed in the US but not a US citizen. My wife, who is not a US citizen either and has never been in States, will join me soon. She has sold our property abroad and would like to transfer the moneys by sending it as a wire transfer from her account overseas to mine in the US. Assuming the amount is between US $100K-$150K in order to buy a property in the USA, what would be my IRS Tax filing/declaration requirements if any? Would I have to actually pay any taxes?

[IntlTax]

When did you start working in the U.S. What is your visa status? Did both you and your wife jointly own the foreign property?

[Zaid Bunni]

March 2008
Green Card Holder
Property was in my name only

Thanks

[IntlTax]

As a U.S. tax resident, you are taxed in the U.S. on your worldwide income. Any gain on the sale of the foreign property would be included in your U.S. tax return. If you lived in the property for 2 of the last 5 years, you may be able to exclude up to $250,000 of gain.

If you don't qualify for the exclusion, you need to include the gain on your U.S. tax return. The gain may qualify for long term capital gain treatment (maximum federal tax rate of 15%).

[MukatA]

1. If you sold property after March 2008, then it will be reported on your U.S. tax return. If you sold your home property, then you can exclude gain of up to $250,000. Read: Your U.S. Tax Return: Profit From the Sale of Your Home

2. If you must report gain on the U.S. tax return, then you can claim credit for taxes paid in your country by filing Form 1116. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

3. You can transfer money. There is no tax involved.

4. You may need to file Form TD F 90-22.1 Read http://taxipay.blogspot.com/2008/03/...h-foreign.html

[Zaid Bunni]

1. If you sold property after March 2008, then it will be reported on your U.S. tax return. If you sold your home property, then you can exclude gain of up to $250,000. Read: Your U.S. Tax Return: Profit From the Sale of Your Home

2. If you must report gain on the U.S. tax return, then you can claim credit for taxes paid in your country by filing Form 1116. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

3. You can transfer money. There is no tax involved.

4. You may need to file Form TD F 90-22.1 Read Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

The property was sold before I became a permanent residant, in another country and taxes were paid there. The whole idea is to bring the funds and invest in the states by buying property or establish a business.

[Zaid Bunni]

The property was sold before I became a permanent residant, in another country and taxes were paid there. The whole idea is to bring the funds and invest in the states by buying property or establish a business.

By the way, the property was sold before March 2008, i.e. when I started to work in the states.
Thanks

[AtlantaTaxExpert]

What was the EXACT date you became a green card holder?

[Zaid Bunni]

Green Card Holder as of Feb. 19 2009

[MukatA]

If you filed resident return for 2008, then you must report the sale on 2008 tac return. If you filed dual status or nonresident return, then you do not report the sale.

[AtlantaTaxExpert]

I agree.

If your visa status prior to your Green Card date of 19 Feb 09 is one where you can file either as a non-resident alien or as a dual-status alien (with the sale of the property being in the non-resident part of the dual-status), you have no legal requirement to report the sale on your U.S income tax return for 2008.

[IntlTax]

When was the property sold?
Were you present at all in the U.S. in 2005, 2006, and 2007? If yes, what was your visa status and how many days were you present in the U.S.
When did you first enter the U.S.