Welcome Guest. Register Now!  


Homeowner Tax Home owner tax issues and rebates.


 
 
LinkBack Thread Tools Search this Thread Display Modes
Prev Previous Post   Next Post Next
  #1 (permalink)  
Old 06-02-2013, 09:26 PM
Junior Member
 
Join Date: Jun 2013
Posts: 2
Selling a brand new constructed house after relocation

Hi,
I kindly ask for your advice on this interesting case, where I already got 2 contradicting views from 2 different tax experts I consulted with.
Here are the details:
- I am not an American Citizen.
- During 2012 I relocated from my country to live and work in Massachusetts USA.
- The relocation was done via my employer, and now I am working in the US office of the company (Intra-company transfer).
- Last month I received a green card, i.e. I am a permanent resident now.
- During 2010, way before I knew about the relocation, I started constructing a house in my country.
- The construction will be completed this month (June 2013), therefore I never lived in the house.
- As I now live in the USA, I wish to sell the house.
- The ask price will produce a profit of about $100,000 from the cost of construction.

My question is:
Do I need to pay tax to the American IRS on selling the house?

One tax expert says that yes, as this is a capital gain and I am a US resident.
The other expert says this is not a standard case of an American citizen investing in real estate and making a profit. He looks at the relocation circumstances.

Independently, I found IRS "Publication 523, Selling Your Home" on the net, that talks about "Excluding the Gain".
However one of the tests (conditions) there for full exclusion, is to live in the house for at least 2 years in the past 5. I could not find guidance for a case where the house was under construction.

I will appreciate any advice and guidance on this case.

Thank you in advance,
Tom.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
 


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Dad moving to USA selling his house in the UK kristianajenkins Capital Gains 4 12-03-2011 12:00 PM
If I Use My 401k For A Down Payment On A House And I Sell The House Within 4 Months ? anunez IRA/Sep 1 06-03-2007 02:34 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.