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  1. #1
    Join Date
    Aug 2011

    Default Bringing Large Sum of Money into the U.S.

    I have recently sold my house in Australia. By Australian tax law, it is still counted as my primary residents (lived in it for more than 2 years and in the last 6 years with out purchasing another property. This property was declared to the Aust tax office and basically broke even over the past 5 years while I have been living in the US as a permanent resident. As it is still counted my primary resident until march, I donít have to pay capital gains tax in Australia

    I am hoping to transfer the money to the US (probably around $400k) and purchase our first US property for me and my family to live in long term.

    From my initial investigation seems the US governments wants 25% of it for capital gains. Or we can do something with a 1031 and have to rent it for 6 months, live in it for 2 years then sell it to possible avoid paying the capital gains. But with a 1031 the interest rate is considerably high and we would probably require a guarantor, couldnít live in it for the first 6 months and have to sell it 2 years after that. Sounds like a real pain in the a$$

    Any way I can bring the money over and minimize any tax I have to pay so I can use it as a deposit and purchase a home at a standard tax rate.

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Bringing Large Sum of Money into the U.S

    You should discuss your situation with an accountant.

  3. #3
    Join Date
    Jul 2007

    Default Re: Bringing Large Sum of Money into the U.S

    The top capital gains rate is 15%. If you've already closed the sale and received funds, the 1031 is not likely to work for you. Typically, you would need an intermediary and foreign real estate is not considered to be a like kind to U.S. property in any case.

    Whether you "bring the money over" or not, you are supposed to report your worldwide income on your U.S. tax return, whether you bring the money here or not, if you are a resident alien filing a 1040 income tax return. If you are filing a 1040NR as a non-resident, then you would only report your U.S. source income. If you've paid taxes on the transaction to Australia, you can get a credit on your U.S. tax return for foreign taxes paid.

    You really must spend a little money and get advice from a tax professional, or you're likely to get yourself into some hot water with the IRS because your understanding of the U.S. tax situation you're in is grossly inadequate.

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