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My question is: US-specific
QUESTION: I am a H1 visa hoder get approved for applying for perminent
resident (I-140), but did not get Green Card . I bought a townhouse one and
half year ago ( which is my first residental home), if I sell it now and
buy a house, do I need pay captal gain income tax? if the anser is yes,
when I need to file tax form and what web site I can down load the form. How
many percent of captal gain I should pay? Can I pay next year when I file
yearly 1040 form?
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david ingram replies:
To be tax free up to $250,000 per person, you have to live in the resikdence for 2 years out of the last five. If you sell before two years, all teh profit is taxable on Schedule D. UNLESS you have a good reason for selling early. A Good reason is NOT just to buy a bigger, better or nicer house around the corner.
A good reason would be an unexpected medical problem, a change of job location or any other unforseen situation which the IRS will accept such as job loss (you cannot pay for it), divorce and hte loss of the second salary to pay for it, etc.
If there is a good reason and you had lived in it for a year and a half (say 545 days) you could prorate the exemption by multiplying the 545 x's $250,000 and dividing by 730 (number of days in two years). The resulting $186, 750 would be the amount that an individaul could make upon the resale of their principal residence.
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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