We sold our house in Apr 2009 and returned to India for good in April itself. We had filed our taxes for 2008-2009. Question is
1. Husband got citizenship in July and me in September 2009. When I consulted my CPA in US, for filing taxes for 2009-2010, he told us that based on no US income received for 2009-2010, we need not file any taxes. But as the house is sold, we need to disclose that information and we have to bear the capital gains of sale of house. Our house was purchased n the year 2002..so won't we fall under long term capital gains.
2. Husband recd unemployment income from State for 2 months in 2009. We did not receive any statement from the State which showed the amount received and neither are we able to contact them for that statement.
3. Pls advise if I shld file for Tax returns in US or just let it go and handle it if any questions arise later?
Tax Dilemma on Sale of house in US
Tax Dilemma on Sale of house in US
Sunsat97 #1
01. If in 2009 your W-2, 1099 etc. income was below the exemption limit, filing of a tax return is optional~ so CPA's advice appears correct
02. Capital gain on house property with a minimum ownership of five years and occupying it for living in two out of the last five years is exempt to a limit of $500k/$250k(Joint/Single).
So, check your numbers and see where your case falls. From the information provided my guess is ~ you have no liability in this regard.
01. If in 2009 your W-2, 1099 etc. income was below the exemption limit, filing of a tax return is optional~ so CPA's advice appears correct
02. Capital gain on house property with a minimum ownership of five years and occupying it for living in two out of the last five years is exempt to a limit of $500k/$250k(Joint/Single).
So, check your numbers and see where your case falls. From the information provided my guess is ~ you have no liability in this regard.
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sanjosedesi
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- Joined: Mon May 03, 2010 12:43 pm
Tax Dilemma on Sale of house in US
You have US citizenship so you are liable for tax on global income, not only on US income. Check whether you are counting your India income in your calculations.
I had a similar situation with a house (but sold at a loss). Turbo tax made me jump through thousand hoops to generate forms for this. I think the IRS wants us to prove we did not make any money on it.
Why are you not able to contact the state? Find their phone number on internet and call them.
It is best to keep records straight, more so when you do not owe any taxes, or have nothing to hide. While IRS is busy chasing swiss banks, you never know when they shift focus.
Check your numbers and income (global) again, and go from there.
Tax year for US will be Jan - Dec 2009.
[EDIT / ADD] I also recall Turbo Tax saying that if we received something like form 1099-S, it must be recorded in the return. For me, it was reported on my schedule D-1.
I had a similar situation with a house (but sold at a loss). Turbo tax made me jump through thousand hoops to generate forms for this. I think the IRS wants us to prove we did not make any money on it.
Why are you not able to contact the state? Find their phone number on internet and call them.
It is best to keep records straight, more so when you do not owe any taxes, or have nothing to hide. While IRS is busy chasing swiss banks, you never know when they shift focus.
Check your numbers and income (global) again, and go from there.
Tax year for US will be Jan - Dec 2009.
[EDIT / ADD] I also recall Turbo Tax saying that if we received something like form 1099-S, it must be recorded in the return. For me, it was reported on my schedule D-1.