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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10488
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a friend who's residence is in the state of NV, but

Customer Question

I have a friend who's residence is in the state of NV, but has a house in the Philippines that she wants to sale. She will be paying CG (capital gains) if any to the Philippine government.
Is the U.S. still going to charge her additional taxes on the sale of this property? If so, wouldn't that be double taxation? If not, how does she bring the money to the U.S. without paying any more taxes?
Submitted: 6 months ago.
Category: Tax
Expert:  Lane replied 6 months ago.

Hi,

...

Bringing the money into the US is not a taxable event. That's just a transfer of location from point A to point B.

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If this person is a US tax resident, however, (US citizen, green card holder or foreign national passing the substantial presence test) the gain (sales price minus basis) IS a capital gain taxable on her US return.

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All worldwide income is taxable for US tax residents, and the calculation and nature of the TYPE of income (capital gain in this case) maintains it's character.

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HOWEVER, if she DOES pay a tax to ANY other government, she will get the Foreign Tax Credit (FTC) to alleviate the double taxation.

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See this:

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https://www.irs.gov/taxtopics/tc856.html

Expert:  Lane replied 6 months ago.

The foreign tax credit is taken on Form 1116, Foreign Tax Credit

Expert:  Lane replied 6 months ago.

Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

...

Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

Customer: replied 6 months ago.
Dear Lane,I would rate your service as a top 10! You were very helpful. Although I figured out the answer, I wanted to double check with someone to make sure.Thank you,
Marlene
Expert:  Lane replied 6 months ago.

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be credited for the work here

...

Thank you!

Lane

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