Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thank you for using Just Answer,Do I have to own the house/s for a certain time to reduce taxes? Longterm holding of Capital Assets does have a better rate on tax. Longterm is 1 year and 1 day. Is there any tax if I reinvest the sales profit within a certain time frame? There is but you may not have the sale happen in such a way that you receive the payment. What you are asking about is a 1031 Exchange. The rules are specific and there are timeframes involved.If I get a tax ID , does this imply that I have to file future taxes in the US every year even those years when I dont have any income here? No it does not imply that you would have future tax. I have been told that a certain % of the sales price be withheld due to the fact that I am not a US Citizen? does the time-owned factor influence the withheld amount? 10% will be withheld. Hiring a director would not chnage the fact
Will the withheld amount be payd back to me? Yes, if the tax were too muchWould it be more beneficial for me to own the house in my personal name? It would not make a difference unfortunately because you are a Non US person
What are the rules if I rent one of the houses? You could count it as a business connected to the US and not have withholding on the rents. You would be required to file and report the rental income but could also be allowed to use the expenses and possibly have no rental income to pay tax on.
Please also advise me of the fees for your services. You only need to rate the answer as Ok, Good, or Excellent (my personal favorite). There would be nothing else you would have to pay to me.
I see you are in CHAT
Take a moment to read my response
then please respond
I can switch to Regular Q&A if you can not respond
ok, so I guess need to hold it one year and one day, what are the tax rates on short term vs long term?
since I have renovated two houses i have spent a lot of money on the renovation,can I deduct the renovation cost for one or both houses owned by the same LLC to reduce the taxes?
what are the requirements of the 1031 exchange?I sell my house to one person with a profit, and buy another house from another person , will i need to reinvest the whole sales amount or only the profit?whats the timeframe?
how long time does it take to get the witheld amount back? do they withhold 105 of salesprice or 10% of gross profit?
if I obtain a work visa , will there still be a withhold of sales profit?
will a work visa allow me to enjoy the same right as residents have, to sell free the house free of tax up to a profit of 250 000 if lived in the house 2 out of last 5 years?
since I have renovated two houses i have spent a lot of money on the renovation,can I deduct the renovation cost for one or both houses owned by the same LLC to reduce the taxes? The renovations would add to the basis or cost. This would make the gain less
what are the requirements of the 1031 exchange?I sell my house to one person with a profit, and buy another house from another person , will i need to reinvest the whole sales amount or only the profit?whats the timeframe? Any amount you do not reinvest but receive yourself would be taxable. The taxpayer may not receive the proceeds or take constructive receipt of the funds in any way, without disqualifying the exchange.
how long time does it take to get the witheld amount back? do they withhold 105 of salesprice or 10% of gross profit? They will withhold on the sales price. The refund could take months.
if I obtain a work visa , will there still be a withhold of sales profit? Yes, as long as you are a nonresident alien
I understand, but what is the different rate for short term profit vs long term profit? and how is the 1 year and 1 day counted, contract date or closing date?
what is renovation cost of both houses exceeds the profit on one house?
how to become a resident alien?
1031. how not to receive the funds for a sale before reinvesting? must I keep it in escrow until I buy a new house?
To meet the substantial presence test, you must have been physically present in the United States on at least: