Selling a US home (single family) as a foreigner, taxes?

[grizli]

What is the name of your state (only U.S. law)? OH

My in-law is a foreign citizen, but owns a home in Ohio, for past 6 years.
He's thinking about selling the properly in a couple of years, what would be his tax implications?

I know as us citizen you pay taxes on capital gains (although you can claim not to in some circumstances if I'm not mistaken) at 10% (correct me if I'm wrong )

Does he need to have a SSN for a sale or any other special documents? (other than visa)

Thanks guys

 

[STEPHAN]

He will have to pay taxes in the US. AFAIK it was changed from 10 to 15%.

He will not be able to get a SSN (and does not need one). He will get a ITIN (Individual Taxpayer Identification Number) from the IRS.

http://www.irs.gov/Individuals/International-Taxpayers/Taxpayer-Identification-Numbers-%28TIN%29

 

[grizli]

Thanks for reply.
Does he pay taxes on the whole amount of sale or difference from original purchase price?

 

[STEPHAN]

Only on the gain.

 

[davew128]

He will have to pay taxes in the US. AFAIK it was changed from 10 to 15%.

No, from 15 to 20. Theres also mandatory withholding on the sale of real property owned by an NRA.

 

[OK-LL]

My state law prohibits ownership of real property within the state by non-citizens; did anyone check to see if this is the case in OH too? If so, the Seller could be looking at larger problems.

 

[Zigner]

I'm curious how anybody can predict the future...

 

[STEPHAN]

My state law prohibits ownership of real property within the state by non-citizens

Really? What state is this?

 

[Zigner]

Really? What state is this?

Oklahoma -

There are exceptions and work-arounds.

 

[STEPHAN]

I thought an "alien" who becomes a bona fide resident of the State of Oklahoma (resident alien) may acquire real property in Oklahoma.

So he does not have to be a citizen, just resident.

 

[FlyingRon]

The 20% capital gains rate only applies to those making more than $406K

 

[davew128]

I'm curious how anybody can predict the future...

Skeletor seems to be using a Magic 8-Ball. And STILL can't defeat He-Man!