Hi Robin, thanks a lot for your prompt response. I need some clarification on your response however, so in the following example:
I bought a house for $100,000.
I sell it for $150,000
a) Following your explanation, there is 30% withholding tax applicable for NRAs on the full $150,000.
b) In addition, Capital Gains of 30% of $50,000 is also applicable ONLY IF I have been physically present in the US for 183 days or more during the tax year.
1. So if I am not physically present in the US for 183 days or more, then only (a) will apply?
2. If I buy through an offshore company, then am I right in assuming that only (a) will apply since it is an offshore company?
3. Who is responsible for withholding both (a) and (b) when I sell my house? The escrow agent?
I bought the house for $100,000
I sold it for $50,000
(a) The 30% withholding on $50,000 would still be applicable?
(b) There would be no capital gains tax even if I had been present for 183 days or more since there was a realised loss on the asset?
(c) In accordance to your second response, would I be eligible for any refund due to the loss, and is so, how would the refund be calculated?
Thanks and regards