selling property in Thailand, buyer paying in USA

[steve-phuket 10]

my wife (Thai) is in the US now, just filed I-485, I-130 approved already,  and she has a buyer for a house she owns in Thailand. The buyer is Thai living in Texas and wants to pay in USD in the US.

 

should she open a US bank account and put the money in there? or have the buyer wire transfer to her Thai bank account? i think ultimately my wife would like the money in a Thai bank, but no hurry since we plan to live in the US for at least 10 years. 

 

The only worry i have is if the US IRS sees $30-100k USD suddenly appear in a bank, is there going to be tax or other issues? what would we need to show to prove its not illicit money and the only capital gain (which there is barely any) would be in Thailand?

 

thx

Edited August 28, 2021 by steve-phuket

[HRQX 4,145]

10 minutes ago, steve-phuket said:

US IRS

If your wife entered the US with the B-2 visa on or before July 2 then she is a resident for tax purposes per the Substantial Presence test: https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test "183 days"

18 minutes ago, steve-phuket said:

and the only capital gain (which there is barely any) would be in Thailand?

Worldwide income must be reported to IRS. So report the small capital gain.

[steve-phuket 10]

its very difficult to calculate the capital gain since we built the house from scratch and didn't really keep that many receipts. my best guess is we are basically break even.

 

i guess you are saying just declare something so it all looks legal? since the first $80k of overseas income is tax free i think (at least earned income, not sure capital gain) then i guess the is no downside to declaring it

 

 

Edited August 28, 2021 by steve-phuket

[Wuozopo 4,293]

On 8/28/2021 at 6:51 PM, steve-phuket said:

i guess you are saying just declare something so it all looks legal? since the first $80k of overseas income is tax free i think (at least earned income, not sure capital gain) then i guess the is no downside to declaring it

 

Foreign Earned income (money from employment) can have the taxes it would generate excluded. Interest, dividends, capital gains are not earned income and are taxable. The IRS has specific rules for sale of a home. Read what the IRS has to say https://www.irs.gov/taxtopics/tc701.