US TAX - Do I PAY TAX ON FUNDS I AM BRINGING INTO THE US FROM ABROAD ?

[50 cool 50 0]

No, he didn't earn it recently did he? He already had the money. He is just moving it, right? There is no tax to move cash to the US.

earned pre U.S.

just moving it

[50 cool 50 0]

back to my original question about selling a property abroad and wanting to bring the cash in.

I read somewhere there is a grace period for immigrants assymulating and bringing cash into the usa. I dont fully understand this law but maybe you can help me with it.

I actually wanted to sell this my home overseas around the time I was dating my now American wife in the united states and bring the cash in then and use it to set up a life in the USA with her, (and I would have had no taxes to pay the USA).

At the time we were filling out the immigrations application forms with our lawyer. My immigration lawyer advised against selling the property and bringing the money in because he felt there was always a chance uncle sam may not approve my permanent resident status and he felt that if the residency was not approved I would have no home to go back to overseas. Even when I was sent a green card it was with conditions pending review indefinately and we had to wait almost 18 months for the conditions to be lifted.

A month ago the restrictions were lifted off the card and my lawyer advised me it was now safe to go ahead and sell the home located overseas and bring the money in.

So the question is- is there a grace period for people like me trying to do the right thing. Can I bring money in without paying tax on it under these circumstances?

This is a gray area of the law so I would greatly appreciate everyones input here because I really want to do the right thing by my family.

thank you : )

[Harpa Timsah 13,258]

You lawyer sounds completely silly to me. There is no grace period. Anyone can bring cash to the US with no tax.

Earnings are a different matter. If you make money off of selling the house, then I think you need to declare it as income on your taxes if you don't reinvest immediately. I am not talking about the whole amount of sale, but rather only the part that you made a return on. Say you bought the house for 100 Euros and now you sell it for 130 Euros. 30 is your gain.

But, you should talk to a competent tax professional, not your lawyer.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Sale-of-Residence---Real-Estate-Tax-Tips

It sounds like you would have been better off sellling it before, claiming it as your main home. Not sure you qualify for the main home exemption listed in that link now.

But talk to a real competent tax person.

http://www.irs.gov/uac/Ten-Important-Facts-About-Capital-Gains-and-Losses

Edited October 22, 2013 by Harpa Timsah

[Shanelle 21]

This could be totally off the topic, but, it would apply to Canadians when filing their income tax. I just received this link today from Canada Revenue.

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html?emaillink#txblgtns

[TBoneTX 43,061]

Old thread is now closed to further comments.

Recent post has been split from this thread and made into its own topic, in the Tax & Finances forum, with this thread title: "Tax on Foreign-House Sale to Buy U.S. House? [split topic]."

Edited March 29, 2015 by TBoneTX