Scenario 1: I have a property back home that I purchased from here many years ago. If I sell it and bring the proceeds here in US then what kind of taxes do I need to pay?
Sceneries 2: I have a property that was transferred to my name by my dad many years ago. If I sell it and bring the proceeds here in US then what kind of taxes do I need to pay? Note: Posting above for a friend. Thanks.

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Posting as :
works at
You are currently posting as works at

How do you plan to bring the proceeds to the US?

I am assuming the person is a resident alien in the US, since you have not given those facts.

Scenario 1 and 2: If you have owned and lived in this home for at least two of the last five years, then you will be eligible to exclude a gain of up to $250,000 ($500,000 for married taxpayers) from taxation. If you have not owned and lived in the home for at least two out of the last five years, the gain will be taxed at capital gain rates.

The income though will be considered as foreign sourced income and foreign tax credit can be claimed for any taxes paid in home country.

What’s the value of your Indian Property?

Her property is around USD 250k.

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