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Tax on Foreign-House Sale to Buy U.S. House? [split topic]

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Greetings, my question is a little different that what is posted. My wife is a Filipino with a ITIN and a green card. She is selling our house in the Philippines and would like to transfer the money to the United States to buy a house in Las Vegas. As such since she is selling one house and buying another will there be any taxes? Also what forms will be needed to transfer the money... Thanks a lot

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The above post was split from a now-closed thread in the General Immigration Discussion forum and has been made into its own topic here.

VJ Moderation


06-04-2007 = TSC stamps postal return-receipt for I-129f.

06-11-2007 = NOA1 date (unknown to me).

07-20-2007 = Phoned Immigration Officer; got WAC#; where's NOA1?

09-25-2007 = Touch (first-ever).

09-28-2007 = NOA1, 23 days after their 45-day promise to send it (grrrr).

10-20 & 11-14-2007 = Phoned ImmOffs; "still pending."

12-11-2007 = 180 days; file is "between workstations, may be early Jan."; touches 12/11 & 12/12.

12-18-2007 = Call; file is with Division 9 ofcr. (bckgrnd check); e-prompt to shake it; touch.

12-19-2007 = NOA2 by e-mail & web, dated 12-18-07 (187 days; 201 per VJ); in mail 12/24/07.

01-09-2008 = File from USCIS to NVC, 1-4-08; NVC creates file, 1/15/08; to consulate 1/16/08.

01-23-2008 = Consulate gets file; outdated Packet 4 mailed to fiancee 1/27/08; rec'd 3/3/08.

04-29-2008 = Fiancee's 4-min. consular interview, 8:30 a.m.; much evidence brought but not allowed to be presented (consul: "More proof! Second interview! Bring your fiance!").

05-05-2008 = Infuriating $12 call to non-English-speaking consulate appointment-setter.

05-06-2008 = Better $12 call to English-speaker; "joint" interview date 6/30/08 (my selection).

06-30-2008 = Stokes Interrogations w/Ecuadorian (not USC); "wait 2 weeks; we'll mail her."

07-2008 = Daily calls to DOS: "currently processing"; 8/05 = Phoned consulate, got Section Chief; wrote him.

08-07-08 = E-mail from consulate, promising to issue visa "as soon as we get her passport" (on 8/12, per DHL).

08-27-08 = Phoned consulate (they "couldn't find" our file); visa DHL'd 8/28; in hand 9/1; through POE on 10/9 with NO hassles(!).

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We did something similar from Ireland to the USA. There were no taxes on the US side (well, there will be property tax once you own the house), but there may be from the Philippines that would be local law.

We put the money in our Irish bank account and then did a direct bank transfer to our US bank account, and from there to the house seller's account.


Bye: Penguin

Me: Irish/ Swiss citizen, and now naturalised US citizen. Husband: USC; twin babies born Feb 08 in Ireland and a daughter in Feb 2010 in Arkansas who are all joint Irish/ USC. Did DCF (IR1) in 6 weeks via the Dublin, Ireland embassy and now living in Arkansas.

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Hi,

You as an USC and your wife as an LPR are taxes on your worldwide income.

The profits from selling your home is taxable. However, there is a exemption up to $500,000 in profits if you two have lived there for at least 2 of the last 5 years.

Transfer the money using one of the big international banks. They will help with the paperwork.

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Greetings, my question is a little different that what is posted. My wife is a Filipino with a ITIN and a green card. She is selling our house in the Philippines and would like to transfer the money to the United States to buy a house in Las Vegas. As such since she is selling one house and buying another will there be any taxes? Also what forms will be needed to transfer the money... Thanks a lot

There is a whole IRS Publication on that. Start Reading Pub. 523 Selling Your Home http://www.irs.gov/pub/irs-prior/p523--2014.pdf

Edited by Nich-Nick

England.gifENGLAND ---

K-1 Timeline 4 months, 19 days 03-10-08 VSC to 7-29-08 Interview London

10-05-08 Married

AOS Timeline 5 months, 14 days 10-9-08 to 3-23-09 No interview

Removing Conditions Timeline 5 months, 20 days12-27-10 to 06-10-11 No interview

Citizenship Timeline 3 months, 26 days 12-31-11 Dallas to 4-26-12 Interview Houston

05-16-12 Oath ceremony

The journey from Fiancé to US citizenship:

4 years, 2 months, 6 days

243 pages of forms/documents submitted

No RFEs

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There is a whole IRS Publication on that. Start Reading Pub. 523 Selling Your Home http://www.irs.gov/pub/irs-prior/p523--2014.pdf

Hi Nick-Nick,

Thanks for pointing out the related document regarding partial exclusion on home sale.

BTW. This is the link for Year 2015: https://www.irs.gov/pub/irs-prior/p523--2015.pdf

I have the relevant case with the thread's topic :

- I bought a house in my home country (europe) for $100,000 on Dec 2002

- I moved in to US with my family on Jan 2012 due to working assignment from my company using L1 visa

- I got my GC (LPR) on Dec 2014

- I need money to be used for mortgage down payment, so I decided to sell my house (in my home country) on Jul 2015 for $300,000

Calculation and Explanation:

- I fill my 2015 tax return as married filling jointly

- My capital gain from home sale => 300k - 100k = 200k

- According to the pdf document, I'm eligible for home sale partial exclusion, because:

- Work-related move

- For the last 5 years prior to the home sale, I lived in this house from Jul 2010 until Jan 2012 ==> 18 months

- Under these facts, I can exclude from tax a maximum of $500k x (18 / 24) = $375k ... ==> nothing to pay, since my capital gain of $200k is still far below the max limit.
So, I just would like to confirm whether my calculation above are correct or not. If not, I need your input & advice please....
Since I have nothing to pay (capital gain is below the max limit), should I still have to declare my home sales to IRS?
Thanks again for this wonderful forum.
Regards,
Pazzini

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