Real Estate property and Tax implication becoming a US citizen

[TravelingLilly 14]

Hello again everyone,

 

starting from January 2024 I can file the N400. However, the main concern in requesting the US citizenship or not, is the tax implications. 
 

I basically own an apartment in my country, which was purchased by my parents in 2014 and right after was donated to me. It has a certain value (range 500k to 1M $), hence I am afraid I have to pay high taxes on it. Btw, I am not getting any income from the property. My parents live there. 
 

Question is, if I decided to become a US citizen will I have to pay taxes on it? Or, since it was purchased before US neutralization and do not get income, should I be fine?

 

thank you ! 

[Crazy Cat 41,857]

Since you are a Green Card holder, it makes no difference when you naturalize in respect to taxes.  The tax implications are exactly the same for Green Card holders and Citizens.   All world-wide income must be reported by Green Card holders, and the same applies to citizens.  By the way, taxes are paid on income....not assets or wealth. 

Edited January 10 by Crazy Cat

[Lemonslice 4,841]

Without knowing @TravelingLilly     situation it's hard to know.

 

There is the implication that becoming a citizen is for life, or until you renounce it, and the obligation of filing every year stays, even if you are no longer a resident. 

 

Best to prepare your questions and consult with a fiscalist.  Closest consulate of Italy might even have a list of known professionals in your area.

 

For example, what happens if I get inheritance/income/assets while being a permanent resident/US citizen/Italian citizen, living in the US/in Italy/in a third country?  It can get complicated, and costly, to pick the wrong path.

 

Edited January 11 by Lemonslice