Pay Taxes on The Sale Of Your Property
Once the closing paperwork is completed, if you receive earnings for your home, the U.S. Government considers this payment to you as a “capital gain,” a form of income, and this payment will therefore be subject to a capital gains tax. Generally, U.S. residents can exclude up to $250,000 in capital gains when selling their primary residence.
For foreign owners and investors, the U.S. Government will still collect taxes on capital gains through the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). This law authorizes the IRS to apply withholding income tax on foreign persons and corporations that have sold property in the United States. There is a common exception to FIRPTA withholding: a foreign person or corporation purchasing a home is not required to withhold tax when the buyer purchases the home for their residence and the purchase price is $300,000 or less. Whether you are a residential homeowner or an absentee owner or investor, your Carlos German And Team Advisor can help save you a lot of grief by referring you to a Certified Public Accountant (CPA) or other tax professional to assist you with this final step in the sale of your property.
We hope that if you are looking to sell a property in the area you found this information useful. If at any time you have a question or need additional information about the selling process, our marketing strategies, home selling analysis, or anything at all, you may contact us by completing the form below, calling at 407-910-2553 or 1800-383-8455, or emailing at Info@CarlosAndTeam.com