On April this year , I got $49,000 in El Salvador, Central America. This was from the sale of a property, that I inherited , many years ago. I deposited the money on a local bank, and because I'm a resident of the USA; I had to filled up a W-9 form. The money as I mentioned is in El Salvador.
How will this affect me for 2023 Taxes.
Please advice me
Thanks
In reference to this question , which I already got the answers ;
I just want to know 2 more things
1) If I was going to bring the money into the US, once I deposit it on my bank account ; I know the bank will reported it to the IRS, but will I have to pay taxes on it , again ?
And if I was to bring it next year 2023, will I have to pay taxes on 2024 ?
2) what about state taxes , I live il Louisiana ?
Hi,
The income event for both IRS and state purposes is when the property was sold, not when the money is moved to the US. Therefore, the income will be reported in the year sold.
Louisiana will tax you on all your worldwide income if you are domiciled in the state, even though you may not be a resident there. Taxes in Louisiana will also be for the year of the income event, not the year the money is moved to the US.
Please give a thumbs up to cheer below if this answer helps!
Best,
Karen
Hi,
The income event for both IRS and state purposes is when the property was sold, not when the money is moved to the US. Therefore, the income will be reported in the year sold.
Louisiana will tax you on all your worldwide income if you are domiciled in the state, even though you may not be a resident there. Taxes in Louisiana will also be for the year of the income event, not the year the money is moved to the US.
Please give a thumbs up to cheer below if this answer helps!
Best,
Karen