Income tax on sold property in Houston, Texas

What is the name of your state? Texas


I am Indian national working in UAE as I.T Professional, puchase a condo in Houston in 1990 for $35,000/- (paid cash 25,000/- + 10,000/- morgaged). Morgage amount paid off 5 years ago. Now, I am going to sell it out for approximately $70,000/- through broker. Please advice me wether i have to pay income tax on sold income if yes how much & at what rate

"I am Indian national working in UAE as I.T Professional, puchase a condo in Houston in 1990 for $35,000/- (paid cash 25,000/- + 10,000/- morgaged). Morgage amount paid off 5 years ago. Now, I am going to sell it out for approximately $70,000/- through broker. Please advice me wether i have to pay income tax on sold income if yes how much & at what rate"


Based on information in IRS Pub 901 (U.S. Tax Treaties), yes, you would be taxed on your capital gain ($70k sale price less $35k purchase price, plus any improvements made, less any selling expenses (ie real estate agent commissions) from the sale of your residence. Your capital gains would be taxed at a rate of 30%. See Table 1 on page 31 of IRS Pub 901 - http://www.irs.gov/pub/irs-pdf/p901.pdf

However, according to Pub 519 (U.S. Tax Guide for Aliens), if you are a resident alien, you MAY be able to exclude up to $250,000 of the gain on the sale of your main home, provided you meet the requirements of Pub 523. http://www.irs.gov/pub/irs-pdf/p519.pdf

I would STRONGLY recommend you meet with a tax accountant in your area.

-Christina