Elvira

I'm not really sure what I am referring to - I just vaguely remember reading somewhere that LPRs are discriminated against by the IRS when it comes to selling one's home (compared to USCs).

Rodney you plonker

I have sold a few houses here as a LPR and its never been an issue. There is an extra charge if you are out of state but that's all.

David Richardson

If you're referring to your primary residence, I don't think capital gains tax applies any more provided you buy another primary residence. I'm not a CPA and you should consult one for q's of this type. If memory serves me the old rules were that you had 2 years to buy another house with gains made from a sale. If you didn't buy in 2 years then the gains were subject to tax. Don't take my word for it tho' - consult a CPA.

Rodney you plonker

No capital gains until you reach $250,000. Then you pay the tax. If you are married and your spouse is on the deed as well, then its $250,000 per person.

Good old George Bush made new rules for capital gains a couple of years ago. You see he was good for something.

Jerseygirl

Yep...I was just going to post the same.

Elvira

I thought the rules were different for non-citizens? Particularly if one doesn't buy another home and leaves the US.

Ray

It is .............

Elvira

Peace be upon you, Great Wise One

Are you going to tell us?

Or not...

Ray

We have all these experts on here ..they SHOULD know .........

Rodney you plonker

I don't think so... There may be some rules that are different but nothing substantial. When you buy a home you sign a tax form at the closing table, it is the same tax form that a US citizen signs.

My parents are property investors too (they live in the UK), they have bought property in Florida from the UK. They dont even have a social security number and the only stipulations were that they had to have a US bank account, the money had to be borrowed from a bank in Florida, and they had to sign the US Patriot act. The tax form they signed was the same.
They will not get the $250,000 tax break purely because it is an investment property, you only get the break on your primary residence.

Ray

Every house I have seen sold in florida by non resident has had a very large amout withheld by the title company at closing ...

Elvira

I am not talking about buying - I am talking about SELLING. More specifically, about the implications of a LPR selling his US residence, not buying another residence, and leaving the US and not returning.

Which may be the position of the OP (not sure whether she has naturalised or not).

I vaguely remember reading somewhere that the tax could be as high as 40% of the profit, but I was hoping someone here might have concrete information.

Elvira

Okay, but now you are referring to non-residents. What about LPRs though?

AdobePinon

But that's a non-resident. I think there is a 10% required withholding on NRAs selling property. The only issue this brings up is final year residency and chances are good that you'd get that 10% back in April regardless of residency status.

I don't think there are any special rules applied to resident aliens.

Rodney you plonker

I understand that Elivra, but its when you buy the house that you sign the tax form.
Here is a link to the relevent IRS page.

http://www.irs.gov/publications/p519/ch03.html