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pfeifj01 · May 11, 2010, 03:39 PM

I am a green card holder in the US. I am married to a US Citizen. I have a condo I want to sell in Brazil and pay off a condo I own in the US. From what I have read on your site I can do a money transfer from bank to bank. And I understand I have to report this money but will I have to pay taxes on it when the money gets here? Is it considered income? I think the place will sell for around $200K, US money. I think I read I had to fill out a Schedule D but I am confused because I looked at that form and it implies I have a capital gain and I will pay taxes on that gain. Can you please explain this?

AtlantaTaxExpert · May 12, 2010, 08:29 AM

Was the Brazilian condo your primary home? If so, then selling it should have NO tax consequences as you can claim a $500,000 exemption on the capital gain. You do not even have to report it.

If you need professional help, email me at [email protected].

pfeifj01 · May 15, 2010, 02:57 PM

No its not my primary home. I have lived in the US for 5 years and I have a condo in the US. I just never sold the condo in Brazil before I left there.Now I want to sell it since I don't think I will ever live there. So this $500,000 exemption on capital gains that means unless I make over $500,000 on a home or something like it I don't have to pay taxes on it and I can just sell the condo there, put the money in an account in Brazil and transfer it over to my US account and I pay no taxes?

AtlantaTaxExpert · May 17, 2010, 09:31 AM

Sorry, but if it is NOT your primary home, then capital gains taxes DO apply. You would report the sale on Schedule D and apply the applicable capital gains tax, which may be as little as 0%, but no greater than 15%.

pfeifj01 · May 18, 2010, 05:20 PM

OK, makes sense. What if I put the money in a bank account in Brazil and just sat on it. Do I report that money on a tax return in that situation. Or do I report no matter what? Thanks for all your info. Very helpful.

pfeifj01 · May 18, 2010, 05:20 PM

OK, makes sense. What if I put the money in a bank account in Brazil and just sat on it. Do I report that money on a tax return in that situation. Or do I report no matter what? Thanks for all your info. Very helpful.

AtlantaTaxExpert · May 19, 2010, 01:15 PM

Does not matter WHAT you do with the money; the tax is still due for the tax year in which the condo is sold.

Further, if the capital gain exceeds $10,000, you have a requirement to make an estimated payment during the calendar quarter when the sale was made. You would use Form 1040-ES to make the payment.