Capital gains tax on sale of primary residence before entering USA on immigrant visa

Houston Tax Attorney



I am sponsoring my parents in India for their green cards. 

(1)Do new immigrants become liable for US taxes on being granted an immigrant visa OR do they become liable after they enter the country on an immigrant visa and acquire a green card 
(2)If they sell their primary residence in India prior to entering the US on the IV do they owe an US capital gains tax 


The would not be taxed in the US on foreign sourced income unless they are considered to be US residents. A person becomes a US resident for tax purposes by meeting one of the following tests: 1.) lawful permanent resident test or 2.) substantial presence test. 

A person becomes a lawful permanent resident when they are issued a green card by USCIS (Form I-551) and enter the country. After this point, they are taxed on worldwide income as US residents. 

There are other variables that makes it impossible to give you any specific advice in this type of forum, but that is the general rule. Even if they do sell the home after establishing US residency, there may be exclusions on capital gains available.

-Law Office of Kunal Patel, LLC

Comments are closed.