Paying taxes on foreign income LPR

[BeckyD 0]

My hubby is a legal permanent resident and he sold his apartment in Peru, but has not worked this year. Does he pay taxes on the sale of his property? What about on interest on stocks? Thanks!

[CarlosAndSveta 808]

My hubby is a legal permanent resident and he sold his apartment in Peru, but has not worked this year. Does he pay taxes on the sale of his property? What about on interest on stocks? Thanks!

For tax purposes your husband is considered a resident alien and is taxed on his worldwide income. To answer your questions he should report the sale of his property especially if he had a gain on the sale. If the property was his personal residence then you will need to check to see if any of the gain can be excluded. Interest income and dividends on stock should definitely be reported on the tax return.

[BeckyD 0]

Thank you! Do you know what the cutoff is for excluding the gain? It was his personal residence before moving yo the US.

[CarlosAndSveta 808]

Thank you! Do you know what the cutoff is for excluding the gain? It was his personal residence before moving yo the US.

If you file a joint return the maximum amount of gain you can exclude on the sale of your residence is $500,000. Here is a link to the IRS Publication about selling your home:

Publication 523 - Selling Your Home