Ask Experts Questions for FREE Help !
Ask
    taxq456's Avatar
    taxq456 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    May 29, 2010, 06:29 AM
    Foreign property tax
    Hi,

    I am working in US and am neither a US citizen nor a Green card holder (but am a resident for tax purposes). I have a property (home) in my home country which I would like to sell and reinvest the capital gains in another property in the same country (so as to avoid taxes).

    Will US require me to pay taxes on this (since taxes will be exempted by my home country and Uncle Sam wants a cut on global income)? I do not have any other home anywhere and I am renting in US. But I do not know whether it will meet the primary residence criteria?

    Is there a way I can avoid payment to Uncle Sam?

    Thanks.
    taxq456's Avatar
    taxq456 Posts: 2, Reputation: 1
    New Member
    		  
    #2

    May 29, 2010, 06:37 AM

    Just to add to the above.. the home is not rented out. This is the place where I live whenever I visit my home country (average 2 weeks per year).
    Also, I am not bringing back the capital gains to US.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Jun 1, 2010, 03:00 AM

    As a U.S. resident, you must report worldwide income. Sale of home will be reported on schedule D (Form 1040) and gain is taxable in the U.S.
    If you pay any tax in India, you will claim foreign tax credit by filing Form 1116. If you do not pay any tax in India, you will not get any tax credit in the U.S.
    If your home is India in your main home, you can exclude gain of up to $250,000. Your U.S. Tax Return: Profit From the Sale of Your Home
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Us tax on foreign property [ 1 Answers ]

Hello, similar question to Conlaw78 in Jan 2008... plus: - what specific form (if any) should be appended to the US Tax Return to enlist the income generated by foreign property sale - how should funds be transferred to the US... simply one bank-to-bank transfer, or is there a $$ limit /...

Tax on Foreign Property [ 1 Answers ]

My dad was born in another country and bought real property before immigrating to America. After he moved to America and became a US citizen, he maintained ownership of the foreign property. He now wants to sell the foreign property for a good profit and bring the money over to the US. Is...

Foreign Property Tax [ 1 Answers ]

My wife owns a house in the Philippines, which was purchased before we were married. Every year, she pays the property tax on the property. I was wondering if I could claim a deduction for the property tax in the Philippines and, if so, how would I go about doing this?

US Tax on foreign property? Interest Deduction? [ 2 Answers ]

I am a US Citizen (US Marine) who has a Swedish Wife (with Green Card). We have bought a house in Sweden. We pay Swedish taxes on the house, and the rental income. Do I have a tax obligation to the IRS? Can I deduct the mortgage interest on my US Taxes? Any advice greatly...

View more questions Search