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MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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Do foreigners have to pay capital gains taxes from real estate

Resolved Question:

Do foreigners have to pay capital gains taxes from real estate sold in the US? If so, how does the government collect if the person doesn't have a SS# XXXXX also leaves the US after the sale.

Can a person entering the country and planning to stay bring in any amount of money from foreign sources to live on without paying taxes on this money?
Submitted: 5 years ago.
Category: Tax
Expert:  MequonCPA replied 5 years ago.

Hi and welcome to JustAnswer:

 

Technically, tax should be withheld from the sales proceeds to assure tax payment. The foreigner would then need to file a Form 1040-NR to obtain a refund for any excess taxes withheld.

Customer: replied 5 years ago.
You say " technically" - are the capital gains taxes withheld through an escrow agent - and what if none is used?
Expert:  MequonCPA replied 5 years ago.

Hi -

 

I say technically because the escrow agent should withhold and hopefully will.

Customer: replied 5 years ago.
What if no Escrow Co is used?
Expert:  MequonCPA replied 5 years ago.
It is still supposed to be withheld. Whether by the buyer, his agent, the broker, etc.
MequonCPA and 2 other Tax Specialists are ready to help you

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