Amount of money you can bring into the US

[wherezdabearz 0]

Once you're resident in the States for tax purposes, you are taxed on all WORLDWIDE income, although you can apply foreign tax credit for taxes already paid overseas.

As I understand it, on the sale of a house you would pay capital gains tax on any profit made since you bought the house. Don't know if this would be in country of origin or the States, but you end up having to pay it somewhere..!

[meauxna 15]

Once you're resident in the States for tax purposes, you are taxed on all WORLDWIDE income, although you can apply foreign tax credit for taxes already paid overseas.

As I understand it, on the sale of a house you would pay capital gains tax on any profit made since you bought the house. Don't know if this would be in country of origin or the States, but you end up having to pay it somewhere..!

Very good thinking!

It has been pointed out elsewhere that the sale of a house AFTER obtaining Permanent Resident status (completing AOS) MAY have US tax consequences. This is an individual scenario that should be checked out in private.

However, a K-3 is still a non-immigrant, and it has not been show conclusively that a foreign capital gain would have a US tax reporting/burden consequence. (and not everyone is lucky enough to realise a gain on a sale)

Bringing cash over from a previous sale/assets is not income and does not need to be reported to the IRS.

[jlivings99 0]

As a spouse of a USC, you are choosing whether to be taxed as a resident in the year of your marriage ... if USC files married-joint then spouse is treated as a resident whether they lived here or not. Once the foreign spouse lives here they will be treated as a resident ... IRS has presence tests you can check ... but even if the foreign spouse does not meet the test to be a resident they wiil still be taxed as a resident if the couple files married-joint.

That said, if you are treated as a resident for tax purposes you are taxed on world-wide income. World-wide income includes gains on sale of property (for property anywhere in the world). However, if it is the sale of a primary personal residence then $250,000 of gain (or $500,000 if both husband and wife occupied the house for 2 years and at least 1 of them owned it) can be excluded from tax ... assuming the criteria is met. Transferring a lot of cash into the US is one way the IRS is going to find out that you sold property and if they contact you then you have to provide support for why you do not owe tax on the amount ... for example, sale occurred prior to becoming resident, sale was primary personal residence and gain is allowed to be excluded, etc. (burden of proof is on taxpayer).

This is a very general discussion. You should consult a tax specialist if you have questions on your specific situation.

[Mary G. 0]

www.Ozforex.com.au is another foreign exchange broker. Their rates seem really reasonable, particularly for larger sums of money. If you can allow them to make the exchange over a few days, they give you a spectacular exchange rate (making a little interest on your money, I'm sure, in the process). They're worth looking into.

-Mary

Any amount over 5k use a broker for highest rate/no bank charge. We opted for HIFX, easy to set up an account with them and money transferred into our US bank ac in a couple of days. Keep an eye on exchange rate prior to purchasing the dollars.

YES! Banks may advertise "no transfer fees", but their exchange rates SUCK. That's how they make money, after all.

I am happy with http://xe.com They also offer services like future contracts - pretty damn useful for someone who sells a house in Europe and buys one in the US.

Regarding exchange rates - even professionals can't predict them. For "normal" people, it's an absolute lottery. Usually the best we can do is to spread the risk by exchanging, say, a thousand pounds a week.

[Lance27 19]

Thanks to everyone who replied, I am the spouse and my wife is the USC. I sold off my property in 2006 and it was in my name only but we were also married in 2006 (Property was sold prior to our wedding). I will most likely become a Permanent resident this year (2007)

I will contact a tax specialist just to make sure.

Thanks again

Lance

As a spouse of a USC, you are choosing whether to be taxed as a resident in the year of your marriage ... if USC files married-joint then spouse is treated as a resident whether they lived here or not. Once the foreign spouse lives here they will be treated as a resident ... IRS has presence tests you can check ... but even if the foreign spouse does not meet the test to be a resident they wiil still be taxed as a resident if the couple files married-joint.

That said, if you are treated as a resident for tax purposes you are taxed on world-wide income. World-wide income includes gains on sale of property (for property anywhere in the world). However, if it is the sale of a primary personal residence then $250,000 of gain (or $500,000 if both husband and wife occupied the house for 2 years and at least 1 of them owned it) can be excluded from tax ... assuming the criteria is met. Transferring a lot of cash into the US is one way the IRS is going to find out that you sold property and if they contact you then you have to provide support for why you do not owe tax on the amount ... for example, sale occurred prior to becoming resident, sale was primary personal residence and gain is allowed to be excluded, etc. (burden of proof is on taxpayer).

This is a very general discussion. You should consult a tax specialist if you have questions on your specific situation.

[Bobbie 1]

Go into your bank and set it up for a wire transfer to be made once you get into the USA. Speak to them first, or you may find they require you to show up to do the transfer. Then wire the money when you get to the usa. You might be able to get a US bank account now with someone like Deutches bank which is in the usa and europe, that could be easier.

Bobbie

[zyggy 9]

I have been looking all over VJ for information like this. So let me get this correct... I wont be taxed if I bring in the US$50,000 I have from the sale of my home in Canada? Anyone know if I will have to declare this money when I file my US tax return for 2007?

While I certainly encourage you to get the opinion of a couple/few CPAs, our experience was that the money was not taxed and did not need to be declared on our subsequent US tax return. I used Daddy's Big Fat CPA to triple check this for me. It is VERY difficult to find a bog standard CPA in the States who knows jack all about foreign taxes etc, so shop carefully. A couple of us here were burned by our first try (nothing fatal).

\That does remind me of something to add to one of the Moving Here threads tho.. people who enter on an Immigrant Visa MUST file as resident for the entire year that they entered.. ie, we came over in November and the DAH was a US tax resident for the entirety of that year.

If you enter as a K-3, you will not have the same issue.

You can use the same housing exclusion that US taxpayers use for a house overseas... the exclusion can be aplied to any principal residence of the taxpayer no matter where in the world it is... that if you lived in the house for 2 out of the last 5 years, you can exclude the gain on the home up to $250,000 (if only one of you owned the home) or up to $500,000 (if both of you owned the home). Read Publication 523 for more...

If your capital gain was more than the exclusion amount or the exclusion does not apply to you (for example, you or your spouse did not live in the house more than 2 years)... then yes, you must report the capital gain and pay taxes on it for any amount over the exclusion... If a foreign government assessed capital gains taxes on the gain, you can take a foreign tax credit on the capital gains taxes that the US assesses...

Edited March 26, 2007 by zyggy

[Krikit 1,164]

I have been looking all over VJ for information like this. So let me get this correct... I wont be taxed if I bring in the US$50,000 I have from the sale of my home in Canada? Anyone know if I will have to declare this money when I file my US tax return for 2007?

I am still waiting for my K3 visa but I thought I would inquire about this as me and my wife are looking to purchase a home as soon as we settle down in the US

Thanks

Lance

This link may be helpful to you, Lance and Spence...

http://www.visajourney.com/forums/index.php?showtopic=58210