Selling property in home country to buy one in US

[Happy Helicopter 0]

Hi All,

I have plans to sell apartment back in home country (C.I.S. country). Will sell it for $230K. The property is under my moms name, she will be transferring money to me.

I want to use it to buy home here in Seattle area, condo is fine for now.

Do I need to pay taxes on the money? Is it better if I buy it under my name by making it gift or under my moms name?

Thanks!

[TBoneTX 45,287]

*** Thread moved from "Moving to the US" forum to the Tax & Finances forum. ***

[Dave&Roza 748]

Hi All,

I have plans to sell apartment back in home country (C.I.S. country). Will sell it for $230K. The property is under my moms name, she will be transferring money to me.

I want to use it to buy home here in Seattle area, condo is fine for now.

Do I need to pay taxes on the money? Is it better if I buy it under my name by making it gift or under my moms name?

Thanks!

The question is whether you are a USC or LPR and subject to US tax laws. If not, then it does not matter. If you are, I would recommend your mother sells the house and send the money to you. However, you must report any amount above around $135K. There is some threshold that a gift from a foreign relative who is not a LPR or USC can send to you without paying a gift tax, but I do not remember the amount. You might want to check the IRS website. My wife sold her apartment in Almaty which she owned, but to avoid any tax complications in trying to figure the capital gains on her property, we just had her mother sell it and wire us the money. It was below the reporting threshold, so I did not worry about that and figure the bank reported the transfer and it was stated as a gift.

Dave

[Peach7 5]

The question is whether you are a USC or LPR and subject to US tax laws. If not, then it does not matter. If you are, I would recommend your mother sells the house and send the money to you. However, you must report any amount above around $135K. There is some threshold that a gift from a foreign relative who is not a LPR or USC can send to you without paying a gift tax, but I do not remember the amount. You might want to check the IRS website. My wife sold her apartment in Almaty which she owned, but to avoid any tax complications in trying to figure the capital gains on her property, we just had her mother sell it and wire us the money. It was below the reporting threshold, so I did not worry about that and figure the bank reported the transfer and it was stated as a gift.

Dave

Dave, was your wife's mother a USC or LPR when she sold the apartment?

[Dave&Roza 748]

Dave, was your wife's mother a USC or LPR when she sold the apartment?

Neither. I am the USC. M wife is the LPR. My MIL (wife's Mother) is a citizen of Kazakhstan. As she is a non USC nor is she a LPR the IRS allows citizens of other countries that are relatives to gift up to $135K before it must be reported on some IRS or US treasury form. Since we were well below the amount I did not do any more research.

Dave