Have a Tax Question? Ask a Tax Expert
Hello and thank you for using Just Answer,Yes, if your mother is a US citizen or a resident alien she is taxed on her worldwide income. This means even if she does not bring the money back to the US.
She will need to report the sale on her US tax return for the year of the sale. If she received more for the property then her basis in the property she will be taxed on the gain.
What is her tax liability. I thought if she was under the 15% tax bracket her liability would be zero
Her bracket will be determined by her gain as that amount will be added to her income now.
She needs to report the sale even if she has a loss.
So her tax would be her income now plus the gain or loss on the sale of the apartment correct?
That is correct. The gain will be added to her regular income then:The rates will be
for example her gain was 30,000 dollars and her income is 19000. she would be responsible for the tax on 49000
This applies even if she does not wire the money back to the US
Remind her too
that is she has an account over there holding themoney
she will need to report that
I hope our CHAT has been useful
So the upper limit for the 15 percent tax bracket is 65000 dollars. If her gross including the sale of the apt. is 45000 she would owe no tax to us gov
but she would still have to file income tax for the sale of the property
She would need to file and if she has income of $5000 she will have a tax liability but not Capital gains tax
ok I see she would have regular tax liability not captial gains. Thank you
You are welcome