Legal Question in Tax Law in California

I am going to transfer $20,000 from my home country to my new business bank account in order to start my business. This money comes from selling my property in my country.

My questions are:

1- Should I report this money to IRS? If yes how and what form to be filed?

2-Will I pay tax for this transfered money?

Thanks


Asked on 2/06/10, 11:36 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

You should check with the IRS but I believe the rule would be that you must report it as being capital gains income on your standard 1040 form. Iif proprty held for more than one year long term capital gains, if was residence 3 of last 5 years then exclusion for first $250,000 of profits, you get to deduct any foreign taxes paid as to the sale.

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Answered on 2/12/10, 7:39 am


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