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Michael2017

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About Michael2017

  • Rank
    Platinum Member
  • Member # 212009

Profile Information

  • Gender
    Male

Immigration Info

  • Immigration Status
    F-2A Visa
  • Place benefits filed at
    Phoenix AZ Lockbox
  • Country
    Germany
  • Our Story
    2. March 2016 - married in Vegas
    14. Oct. 2016 - sent I-130

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  1. There are some things to consider. First, as soon as the CBP officer saw I have a pending F2A application, he started to ask about my wife. When did you get married, where, what does she work etc., almost like a F2A visa interview at the embassy. Secondly, during my actual F2A visa interview the exact same questions were asked. Some of them are so specific that I figured there is a relation. I had the same thing with 3 different CBP officers. Thus, if you visit during the processing time and CBP officers are aware, they will gather information about your relationship which will be verified during the visa interview at the embassy. Of course, if you have a good and real relationship there is nothing to worry. I was just a bit surprised that I had not to talk about my visit but about my relationship to CBP. I am not very active anymore on this forum but please make sure that active users make other users aware.
  2. This calculator adds the 3.8% already making capital gain taxes 23.80% https://smartasset.com/investing/capital-gains-tax-calculator#run1hHa0kl our Capital Gains Taxes Tax Type Marginal Tax Rate Effective Tax Rate Tax Amount Federal 23.80% 23.80% $23,800 State 0.00% 0.00% $0 Local 0.00% 0.00% $0 Total Capital Gains Taxes $23,800 However, I read the treaty over and over again and also the explanation to it. It seems 99% sure that there is no tax in the USA on property sales in Austria as the double taxation treaty overrules every local rule and the treaty clearly says real property sales are taxed in the country it is located in.
  3. No it is 23,9%, I paid it already the past years. It is 20% plus 3.8% additional penalty to fund Obamacare. It is not about the amount of your capital gain it is about your total taxable income. So if you are in the 37% bracket your long term capital gains are also 23,8%. At least since I am in the USA always my capital gain tax was 23.8% and there was even some additional Investment Income Penalty. I can´t speak for others but my CPA`s always got my taxes for Capital Gains on that. Yes, Improvements etc. could be deducted but I did not do much. Thanks for your efforts in looking into this too. https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates Here is the calculator that actually does ask for the taxable income as a basis of the capital gain bracket. The 3.8% (not 3.9% sorry) is another law that was added to fund Obamacare for higher earners.https://www.irs.gov/individuals/net-investment-income-tax
  4. In Austria the tax is 4.2% of the sales price = $10,500. The capital gain on $100k (reasonable assumption since 2013 based on Austrian price indices ) would be 23.9% = $23,900 (yes I am in a terrible tax bracket for this one). Now the question is if the double tax treaty would do it and the tax paid in Austria is final or if US capital gain of 23,900 - $10,500 = $13,400 needs to be paid or not.
  5. https://hodgen.com/property-you-acquired-before-coming-to-the-usa/ I now found this one which seems to clearly state that 2013 will be the date. Now the only question is, does the treaty prevail, e.g. tax paid in Austria is the only tax and US tax does not apply because this is what the treaty actually specifies? Capital Gains 1. Gains derived by a resident of a Contracting State from the alienation of real property situated in the other Contracting State may be taxed in that other State.
  6. "I wonder the same thing. If you are allowed to use a treaty benefit and it is not taxable by the US, do you have to report the gain? I suppose it is worldwide income. How does the IRS even know the gain when it happened in another country and they got no official notification? Yeah, I’m no help. 😂 " Well the money will go into a bank account and this means the foreign bank will report it to IRS automatically. I will have to file FBAR/FATCA. So IRS will know about a large amount of money that hit my accounts in any case. "This exactly what my CPA instructed me to do last year when I sold a house which was gifted to me in 2011. I estimated the FMV at the time the gift was made. She said that estimating was fine as long as we explained that we were using an estimate." Was this property overseas in a tax treaty country? Also the main question is if the date of becoming a LPR is the data that counts or the date it was gifted. Also with the EUR so low now there actually is a currency loss thus the capital gains in USD will not be as high as in EUR. My previous tax returns for 2019, 2020 all cost $5k so I really hoped I could figure this out without a specialized expat CPA that charges crazy amount of money. Thanks for all the help!
  7. The EA I use knows nothing about international tax treaties etc. The CPA`s I used in my first 2 years cost an arm and leg
  8. Hello, I have a difficult tax question and hope someone knows the answer here:) 1. I got a house gifted in Austria from my parents in 2013. 2. I got my green card in 2019 and became PR during that tax year. 3. I am now selling the house in 2022. 4. The tax treaty between Austria and USA says that taxes for real property sales need to be taxed in the country of the property. 5. Based on other similar threads on VJ, I assume that If capital gain tax is calculated in USA, it is on the profit calculated based on the house worth on the day of my immigration (2019) and the difference to the sales price. Now my questions: a) Is there a link to IRS that says the basis of the house is the worth of the date of immigrating? I could not find anything like that to be honest in writing although it has been mentioned as a rule on VJ. b) Do I still need to pay capital gain tax in USA if the double tax treaty says that taxation is made in the other country? I assume in that case I can deduct the tax paid abroad but the double tax treaty should actually prevent paying taxes in 2 countries. c) I do not know the exact worth of the house in 2019. Is it ok to estimate as follows: house sales price 2022 - average price increase of similar properties in Austria for 2021,2020,2019? I would check how much similar properties appreciated in that period of time and estimate the worth based on that? Thanks for the help!
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