I have a house that I’m going to be selling (~1.8M). I bought it for ~500k (dead cheap in 2009), so I’m making a decent profit, which I would owe tax on. If I relocate to India in early 2025, sell the house while I’m there, and don’t come back to the U.S. till 2026, can I avoid paying income tax on the proceeds? I’m on H-1B, so don’t owe US taxes if I’m not in the U.S. for that year. Has anyone done this before? TC 550k
You don't pay tax for the first 500k if MFJ and pay long term capital gain tax for the remaining profit
But still, if I can save tax on the remaining, too, why not?
You can't avoid the tax, period.
Nope you can’t since you are resident alien for tax purposes even while on H1B if you have stayed in the USA on visa more than 4-5 years. So Uncle Sam will ask for his taxes from this house sale !
If I’m not in the U.S., I’m not a resident alien. For all Uncle Sam knows, I may have gone back for good!
You will have to wait an year. Btw it's not income tax. Its capital gains tax
I don’t mind waiting a year
It's kind of dumb though. Your tc loss isnt worth the trouble. And there are ways to write off property capital gain by buying another property. Unless you are moving back why would you sell
No But assuming you’re married you “only” have to pay tax on $800k - as long as you don’t buy another home. If you turn around and buy another home you’re fine. I’d talk to an accountant to see if there are other ways to structure ownership / sale, like through a like-kind exchange.
You will owe US taxes. With your TC you should be able to afford tax advisor to tell you the same thing though.
U make 500k bruh. Pay some tax lol
Yes you can do this op. Feel free to DM me
- You pay taxes to the country of source of income, regardless of YOUR physical location. - You'd pay LESS tax on capital gains as a resident alien on H1b than non resident living outside of US
India and the US have tax treaties. Stay less than 180 days in each US and India. You can make it work
I’m not sure if capital gains come under that, I’m sure that’s true for income taxes
No