My mom a greencard holder and myself a US Citizen jointly own a home in india estimated around 300,000usd we bought the home 15 years ago for 100,000usd. My mom has lived in the home for the most recent 15 years but now is moving to the US permanently. What is the tax implications if we transfer $300000 to a US bank account. Do we pay taxes on the gain in the US?
It’s not the transferring of the money that causes it to be a taxable event; it’s the underlying transaction. You pay capital gains tax when the property is sold. In addition, if the transaction causes a foreign currency gain, then you would have that gain to report also. For example, if the house was under mortgage, you may have currency gain on the foreign repayment of the mortgage when you sell it. You can bring the $300000 to the US whenever you want as long as you report the sale on your US tax return as well as any interest you earn if you deposit the funds in an Indian bank.
-Law Office of Kunal Patel, LLC