Taxpayer asks:
I would like to ask some tax related questions related to selling a house outside of the USA.
We sold a house in Hungary, with all taxes paid there. There is documentation to prove this. Would there be a tax liability in the USA if the money from this sale would be brought into the US? This money does not contain any wages, it is only the sales of the property.
We are also purchasing a home here in the US. The money would be spent for the downpayment for this home.
If there are taxes to be paid, could you please advise of how, and where this needs to be addressed?
Thank you for your time and help.
Taxgirl says:
If you did not have a presence in the US prior to selling your home, there should be no tax issues with respect to your transferring cash to be used in the US. Be aware that the Treasury is made aware of deposits over $10,000 – but that is largely to monitor potential money laundering.
In other words, after-tax funds derived from non-US assets owned by non-US taxpayers (this is not the same as citizens) are not taxable upon entry to the US.
There is no federal income tax due for the purchase of a home in the US (there may be tax due upon the sale). There may be state or local taxes due – such as real estate taxes due at settlement – but there are no federal income taxes due for a “normal” purchase.
I hope that helps!
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
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