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Buying and selling a HOUSE
- Thread starter Bhola2004
- Start date
Bhola2004 said:Hi,
I am trying to buy a house for living. My visa status is H1B. I am wordering if I have to sell the property for any reason in future, do I have any penalty because of my VISA status. If somebody share their experience with me I will be grateful.
Thanks,
Bhola
No, there is issue with H1, if it's a residential property and you don't rent out to anyone else. Making money from real estate (a real estate that is solely used as your residence) appreciation is not considered business.
Very same way, the depreciation of your car is not considered as "business loss".
But as you are H1B guy, I guess majority of the loan has to be paid from your pocket. It all depends, work with atleast 3-4 banks on this mortgage. They will try to screw you there.
One of my friend bought with H1B status, he paid only 5% down. Think of closing costs, appriciation. BTW how long is your H1 valid?
One of my friend bought with H1B status, he paid only 5% down. Think of closing costs, appriciation. BTW how long is your H1 valid?
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Bhola2004 said:I am wordering if I have to sell the property for any reason in future, do I have any penalty because of my VISA status. If somebody share their experience with me I will be grateful.
Non-US citizens are subject to a witholding of 10% of the GROSS sale price of the house by the IRS. When you file your next 1040 with the IRS, you will be able to claim that 10% back (assuming you don't owe any taxes). This even applies to Green Card holders. It is not a penalty, it simply means you have to wait to get it as a tax refund. You are allowed the same capital gains profit as anyone else who sells property (I can't remember the exact ceiling for tax-free capital gains on a primary residence). You should consult a tax preparer.