Have Tax Questions? Ask a Tax Expert for Answers ASAP
Thank you for your quick reply. I have a follow up question.
Do I need a proof of how long and in what time frame I lived in that appartment in Russia?
I lived there as a child with my family, but appartment always been in my father's name and only recently Title of ownership been transfered to my name. It's pretty typical of generations in my country to pass the property onto children.
My father accuired flat from his mother several years ago, his mother passed away this summer. He did not pay for it, but did made some improvements for about 2,000 USD. The price for which appartment unticipated to sell is 80,000 USD. If I understand you correctly, in this case my basis is 2,000 USD.
Appartment was given to my grandparents by Russian government in 1964, my grandfather passed away in 1982 and flat price at that time was probably around 10,000 USD. So in this case if I undarstand you correctly my basis will be $12,000 USD. What is the actual % ofTax will be applied to that amount as a long term capital gain for federal tax purposes.
there is also 13% tax in Russia. Which amount considered as Gain, pre tax or after tax? after russian tax paid in russia the gain will be around $69,600. Basis 12,000 USD. US taxable Gain is 57,000 USD. Federal Tax 11,550 USD (20%)
not sure I am following you on the $10,400 number, where did it came from?
13% of $80,000 = $10,400
$80,000 - $10,400 = $69,600
all makes scence. Thank you! What type of documents should I keep on file on that sale in case IRS question on why I had increase in cash?
I have not filed any tax return in russia, unless it's something I will need to do following sale of appartment. Would tax info on the sale of appartment suffice?
if I understand correctly if there additional % on the wire transfer of dollar amount than that amount could be used to reduce gain?
Thank you. Is there anything my dad as a US sitizen would have to provide/ file for IRS when he signs appartment over to me?
Thank you! I appreciate your help very much!