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Selling foreign property on H1B

I moved to the USA 5 years ago and am currently living and working on H1B. I own a property in my home country which I have been leasing to private tenants for the last 5 years.

 

I now want to sell the property in my home country, as I may be soon receiving a green card.

 

It appears I have to pay capital gains tax on the rise in value of the property. How is this calculated? Are any deductions available? Can the capital gains tax I pay in my home country be used as a deduction against any US capital gains tax?

 

Thanks

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1 Reply

Selling foreign property on H1B

I forgot to add - I saw something that said a deduction is available if you have lived in the property for 12 months in the last 5 years. I have not. By the time I sell the property, I will only have lived in the property for 4 months in the last 5 years.

 

Does this mean I am liable to pay tax on the full capital gain, BOTH in the USA AND in my home country?

 

I assume that I cannot call the property my 'principal residence' if I was renting the home out while living in the USA (even if, when I moved to the USA, I was on an F-1 non-immigrant visa?) Is there an argument that, as a non-immigrant, my principal residence was still back in my home country?

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