US Tax on selling property in another country

[Natalia 0]

Hello everyone! I'm a citizen of USA and Russia. Now I'm selling my property in Russia and going to do wire transfer to my bank in the States. Will I need to pay taxes in the US on the amount that I transfer from Russia?

[Jackson1975 0]

I recently sold myhouse in the UK and wired the money over to the US.

I didn't/haven't paid any taxes, I'm not sure whether this is right or wrong and no one has advised me otherwise - yet

[payxibka 10,047]

I recently sold myhouse in the UK and wired the money over to the US.

I didn't/haven't paid any taxes, I'm not sure whether this is right or wrong and no one has advised me otherwise - yet

Your sale took place in 2006. The tax filing "season" in the US just began, so if your transaction is reportable then you would just be reporting it now. In addition, you are (for tax purposes) still considered a non-resident alien in 2006. USC's/Resident aliens are taxed differently than a non-resident alien.

[Yodrak 7]

Natalia,

You need to pay tax on the profit you made from the sale of the property - selling price less the cost of the property, less the cost of improvements made to the property while you owned it, less the cost of selling the property.

Nothing to do with how much you transfer to the US from Russia or how much you leave back in Russia.

Yodrak

Hello everyone! I'm a citizen of USA and Russia. Now I'm selling my property in Russia and going to do wire transfer to my bank in the States. Will I need to pay taxes in the US on the amount that I transfer from Russia?

[Yodrak 7]

ICE,

You didn't marry in 2006? I don't think that you owe any tax to the US IRS on the sale of the property, but you might want to check with a tax specialist to be sure.

Yodrak

I recently sold myhouse in the UK and wired the money over to the US.

I didn't/haven't paid any taxes, I'm not sure whether this is right or wrong and no one has advised me otherwise - yet

[Natalia 0]

Thank you everyone for answers!

I got my property as a gift from my grandma back in 90's before I moved to the U.S. My grandma died a few years ago. Does this change anything? Does it still count as income or as a gift?

[payxibka 10,047]

Thank you everyone for answers!

I got my property as a gift from my grandma back in 90's before I moved to the U.S. My grandma died a few years ago. Does this change anything? Does it still count as income or as a gift?

If you are speaking as to how typical US taxation would occur, you received the gift and your tax basis would be the value of the property on the day you grandma died. If you sold the property for more than what it was valued at when you received it the taxable part is the difference the value today and the value on the day she died.

[Toledospod 0]

Hi everyone,

I have a question kind of on the same lines. I had an apartment which was partly bought by me and partly by my father which I sold before moving here last July. We made a profit on it, but I only took about 10%(I think, I have to check on this)of the money we made as my father contributed most of the money to buy it. I originally thought that someone said on VJ sometime ago that you were allowed to make upto a certain amount of money from selling a property abroad without paying tax on it, but from what I seem to understand on this topic, it sounds like I may be wrong. Can someone confirm for me?

I have no understanding whatsoever of US Tax law and although my wife knows about US Taxes and stuff, she's not familiar with this particular issue.

[payxibka 10,047]

Hi everyone,

I have a question kind of on the same lines. I had an apartment which was partly bought by me and partly by my father which I sold before moving here last July. We made a profit on it, but I only took about 10%(I think, I have to check on this)of the money we made as my father contributed most of the money to buy it. I originally thought that someone said on VJ sometime ago that you were allowed to make upto a certain amount of money from selling a property abroad without paying tax on it, but from what I seem to understand on this topic, it sounds like I may be wrong. Can someone confirm for me?

I have no understanding whatsoever of US Tax law and although my wife knows about US Taxes and stuff, she's not familiar with this particular issue.

Other than to state the obvious that it might be best to seek a competent practitioner for this year's filing.

[Yodrak 7]

Or find a web site that discusses tax issues where the participants hate tax accountants as much as VJers hate lawyers.

Yodrak

Hi everyone,

I have a question kind of on the same lines. I had an apartment which was partly bought by me and partly by my father which I sold before moving here last July. We made a profit on it, but I only took about 10%(I think, I have to check on this)of the money we made as my father contributed most of the money to buy it. I originally thought that someone said on VJ sometime ago that you were allowed to make upto a certain amount of money from selling a property abroad without paying tax on it, but from what I seem to understand on this topic, it sounds like I may be wrong. Can someone confirm for me?

I have no understanding whatsoever of US Tax law and although my wife knows about US Taxes and stuff, she's not familiar with this particular issue.

Other than to state the obvious that it might be best to seek a competent practitioner for this year's filing.

[andrea** 0]

Check out IRS publication 523.

http://www.irs.gov/pub/irs-pdf/p523.pdf

The maximum exclusion is discussed on page 12.

[Nikita2Charles 32]

I would speak to a tax accountant, but from what I can tell what happen in Russia stay in Russia

If anything I would say the more concern would the Russian Tax system as far as how they would get a piece of the action, since you are not even in the states yet, don't have an SSN, is not on the system I don't think it would matter much but off, a tax accountant would give you the best advice.

[Nancy2015 2]

I would speak to a tax accountant, but from what I can tell what happen in Russia stay in Russia

If anything I would say the more concern would the Russian Tax system as far as how they would get a piece of the action, since you are not even in the states yet, don't have an SSN, is not on the system I don't think it would matter much but off, a tax accountant would give you the best advice.

She said she is a U.S. citizen

[Nikita2Charles 32]

I would speak to a tax accountant, but from what I can tell what happen in Russia stay in Russia

If anything I would say the more concern would the Russian Tax system as far as how they would get a piece of the action, since you are not even in the states yet, don't have an SSN, is not on the system I don't think it would matter much but off, a tax accountant would give you the best advice.

She said she is a U.S. citizen

Natalia is a typical Russian name, so i am assuming she's a naturalized citizen. The tax expert is the only person who can advise her properly on this matter. Have to verify rules regarding Double taxation, as it is she might be tax already on the sales in Russia.

We have lot companies here that move overseas, They settle their account overseas so they don't pay their due fair of taxes, they use all kinda of loophole in the law. Cayman island, Barbados, Foreign adresses. In their mind what happen in the foreign countries stays there.

Edited January 27, 2007 by Nikita2Charles

[jlivings99 0]

First, US citizens and permanent residents are taxed on world-wide income so it does not matter where the property is. If the property is sold while you are a nonresident but you elect to be married filing joint with your US spouse then you are electing to be treated as a permanent resident and therefore taxable on world-wide income.

The basic gain calculation is selling price - basis. If you received it as a gift (not an inheritance) the basis is the same as the previous owner (what was grandma's basis?). If it is the sale of your personal residence (there are rules defining this) then you can probably exclude up to $250,000 of gain. If it was not your personal residence then it is probably fully taxable.

Of course, be certain to consult a competent tax professional to verify the treatment of your specific situation.