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TanyaB

Claiming foreign home as main residence for taxes and not breaking continuous residence

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Country: Russia
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Hi everyone. Question: I'm LPR and have a house in my home country that I'm selling.

I need to spent half year there to sell the house (in Russia you are paying 0% from home sale if you are tax resident and 30% if not  (and 30% not from gain, from whole sale price!), to become a tax resident you need to spent inside country 6 months). I'm little bit worried about breaking continuous residence and delaying becoming a citizen or having troubles returning back. :unsure: But I think with two 3 months trips  should be fine, if I:

not taking a job there

keep using my USA banks accounts and phone numbers

keep working remotely (graphical freelance) and paying taxes

right?

So, main concern:

 I was thinking about claiming my house as main residence for that 3 + 3 months period on USA tax return (to avoid capital gain tax).

But, will it be a reason to consider my continuous residence in USA broken for this period? :huh: (for naturalisation )

Thanks a lot for any answer

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First you need to apply for re-entry permit. That's the minimum you should do. Next, establishing residence in Russia (for tax purposes) is very dangerous for your LPR status. You need to pay US taxes AND be a resident in the US for tax purposes (i.e. you can't claim a foreign tax residence). Now, you can probably be double-taxed, as long as you don't make any claim that could affect your US tax liability. You are clearly taking a significant risk. This is a question for a good attorney.   

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Country: Russia
Timeline

Hi RandomStairs! Thanks for advice. I did applied for permit.

"establishing residence in Russia (for tax purposes) is very dangerous for your LPR status"

Thanks for warning me. Question:

 

Is it dangerous at the moment when I'll be returning back after first or second 3 months trip? At the airport?

 

Or is it dangerous at the moment when I'll be filing tax return for that year and claiming it as residence for several months? I plan to pay US taxes from all my remote work (same way as I do it here) and also declare foreign home sale. But I hoped to lower capital gain taxes from home sale for the months I was living there (preparing to sell it and everything)

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