chrisandsu Posted October 31, 2020 Share Posted October 31, 2020 Hi all and please forgive me if this is in the wrong section . My wife’s friend who has lived in the USA for the last 30 years has retired and is planning on moving back to Thailand . Her house has recently sold and she made quite a healthy profit . My question is will she be hit with capital gains tax if she takes all of the profit out of the country and into Thailand ? Link to comment Share on other sites More sharing options...
mrwebb8825 Posted November 2, 2020 Share Posted November 2, 2020 My guess would be no as she would be liable for taxes in the US and the 2 countries have a tax treaty. 2 Link to comment Share on other sites More sharing options...
Yellowtail Posted November 2, 2020 Share Posted November 2, 2020 She will likely have to pay taxes in the US, but as income was generated in the US, it will not be taxed in Thailand. If the house has already sold, it is a little late to start trying to minimize the tax load. 1 Link to comment Share on other sites More sharing options...
Popular Post glamont002 Posted November 2, 2020 Popular Post Share Posted November 2, 2020 If the house was her principal residence the first $250,000 of gain is exempt from US tax. If married filing jointly then $500,000 exempt. 3 Link to comment Share on other sites More sharing options...
mrwebb8825 Posted November 2, 2020 Share Posted November 2, 2020 22 minutes ago, glamont002 said: If the house was her principal residence the first $250,000 of gain is exempt from US tax. If married filing jointly then $500,000 exempt. not in all states 1 Link to comment Share on other sites More sharing options...
Pilot3Boz Posted November 2, 2020 Share Posted November 2, 2020 Federal taxes are the same in all states.... 1 Link to comment Share on other sites More sharing options...
KannikaP Posted November 2, 2020 Share Posted November 2, 2020 9 minutes ago, Pilot3Boz said: Federal taxes are the same in all states.... But let's wait and see what happens after tomorrow! LOL Link to comment Share on other sites More sharing options...
khunPer Posted November 2, 2020 Share Posted November 2, 2020 On 10/31/2020 at 5:27 PM, chrisandsu said: My question is will she be hit with capital gains tax if she takes all of the profit out of the country and into Thailand ? If she transfer the money into Thailand in the same calendar years, as she earned them, she is in principle due tax from foreign income; however check with the Double Taxation Agreement (DTA) between USA and Thailand about capital gain tax on real estate. You can find the DTA HERE. Quote ARTICLE 6 Income From Immovable (Real) Property 1. Income derived by a resident of a Contracting State from immovable (real) property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. ... If she transfer the money the following calendar year, or any later year, it's considered tax free savings. Link to comment Share on other sites More sharing options...
khunPer Posted November 2, 2020 Share Posted November 2, 2020 4 hours ago, mrwebb8825 said: My guess would be no as she would be liable for taxes in the US and the 2 countries have a tax treaty. The answer might however be that she due to a DTA (i.e. your "tax treaty") can be taxed in that other state, where she sold the real property... Link to comment Share on other sites More sharing options...
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