Non citizen income

[leerobea]

My client died in 2008. His wife does not live in the U.S. He left her his home. She is visiting the U.S. and asks what will her tax liability be if she sells the residence. She does not have a social security number or ITIN. This is happening in a community property state. What must she do to sell the property? What must she do to take the money from the sale out of the U.S.? She should receive a step up in basis which will give her a large amount of tax free income.

[S T]

Was the non-citizen wife on the deed? Was the non-citizen wife using the property as her personal residence?

If it is a California transaction and not under the personal residence exclusions, or a complication due to the wife qualifying for personal residence exclusion and the non resident or citizen status, you might want to review the California Withholding Requirements for Sale of Calif Real Estate
at https://www.ftb.ca.gov/individuals/w...l_Estate.shtml

Sandy

[leerobea]

Non citizen income

Was the non-citizen wife on the deed? Was the non-citizen wife using the property as her personal residence?

If it is a California transaction and not under the personal residence exclusions, or a complication due to the wife qualifying for personal residence exclusion and the non resident or citizen status, you might want to review the California Withholding Requirements for Sale of Calif Real Estate
at https://www.ftb.ca.gov/individuals/w...l_Estate.shtml

Sandy

The wife is not on the deed. The home is currently in probate. The wife was not using the property as personal residence. She live in Romania.

[S T]

I am not proficient with non-citizens and US income requirements, I do know though if it is California Real Estate, California is going to want the Withholding requirement forms as a non-resident of Calif and there are forms that have to be completed at the Escrow Closing, .

Someone else hopefully will provide you with the Federal requirements.

Sandy

[Burke]

Many states require withholding now for sale of non-resident-owned properties. However, if she was not on the deed, it is an estate asset until transferred to her. Is she the executor? If so, has she qualified and posted bond? If she can have the deed rewritten in her name by virtue of it passing under the will, then she may be able to effect the sale herself, but if withholding is done because of her non-residency, she will have to file a US tax return to get it back. And that would require a tax ID#. If the estate sells the property, it could take credit for any withholding on Form 1041, using the EIN of the estate, and then disburse to the beneficiary if it was not needed to pay expenses and other taxes. It doesn't sound like there is any capital gain involved. Monies can be wired to another country (now electronically transferred) by filling out the proper forms at a bank. The estate could do this from its account.