Capital income tax question

[Mary&Dan 13]

Question: I sold my house with a +100.000 euro profit which is considered capital gain. In the Netherlands I don't have to pay capital income tax over this amount if the money is transferred to a foreign bank account before the end of the year (December 31st 2017) (or if I invest the money in buying new real estate in the Netherlands, which is not an option because I'm moving to US). I'm signing over the deed of my house on July 14th. I was planning to fly to US with my K1 visa one week before that. My question is: 1) do I have to pay capital income tax over this money in the US once I have moved it to a US bank account before the end of the year? 2) Does it matter I'm already in the US when the house is actually sold? 3) Does getting a greencard before the end of the year have influence on paying capital income tax over this year (as it changes your status from non-resident to resident)? 4) Would it make a difference if I would want to invest the money into buying a new house in the US and what would be the time period for that?

 

Because of the ambivalence of the K1 visa (immigrant/non-immigrant) and the changes of status one goes through in the process it's kind of confusing to me what applies and when. 

 

[EmilyW 1,434]

The US don't care unless the capital gains is $250k per person (or $500k per couple).  Your profit is well under that amount so, as far as I can see, it's a non-issue.

 

 

[Suss&Camm 2,213]

1 hour ago, Mary&Dan said:

Question: I sold my house with a +100.000 euro profit which is considered capital gain. In the Netherlands I don't have to pay capital income tax over this amount if the money is transferred to a foreign bank account before the end of the year (December 31st 2017) (or if I invest the money in buying new real estate in the Netherlands, which is not an option because I'm moving to US). I'm signing over the deed of my house on July 14th. I was planning to fly to US with my K1 visa one week before that. My question is: 1) do I have to pay capital income tax over this money in the US once I have moved it to a US bank account before the end of the year? 2) Does it matter I'm already in the US when the house is actually sold? 3) Does getting a greencard before the end of the year have influence on paying capital income tax over this year (as it changes your status from non-resident to resident)? 4) Would it make a difference if I would want to invest the money into buying a new house in the US and what would be the time period for that?

 

Because of the ambivalence of the K1 visa (immigrant/non-immigrant) and the changes of status one goes through in the process it's kind of confusing to me what applies and when. 

 

The only thing to remember is you'll be over the limit for FBAR filing come 2017 taxes ($10k at any time of the year), and you'll need to file 8938 as you'll have been over $75,000 "at any time o the year" ($150k if filing jointly). If you don't live in the US when the gain is received the numbers increase to $300 and $600k respectively, in which case you wouldn't need to file the 8938.

https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

https://www.fincen.gov/sites/default/files/shared/FBAR Line Item Filing Instructions.pdf

 

note: These are only reporting obligations and do not incur tax