Hi, I sold a condo in US last year and 10% of the contract price was withheld by the IRS. I am now filing a US tax return (1040NR) to get a refund from the overwithheld tax.
The question is: how do I calculate the amount of capital gains tax needed to be paid? Do I need to file Schedule D? What tax rate should I use?
Since I was a student and had no income, does it mean that I fall under the lowest tax bracket and as such would be exempted from paying the capital gains tax?
US Capital Gains Tax for Non-resident Alien
Moderator: Mark T Serbinski CA CPA
You calculate the tax, like any other investment. proceeds - costs.
use 1040NR and schedule D. That will determine what your tax rate is. I suspect that if it less than ~40K, you will have no US federal tax to pay.
Of course, the sale is to be reported on your Cdn return, with costs and proceeds determined in C$, based on the exchange rate in effect when each of those costs and proceeds occurred. If you bought when the C$ was strong and sold last year, expect a pretty hefty taxable gain.
use 1040NR and schedule D. That will determine what your tax rate is. I suspect that if it less than ~40K, you will have no US federal tax to pay.
Of course, the sale is to be reported on your Cdn return, with costs and proceeds determined in C$, based on the exchange rate in effect when each of those costs and proceeds occurred. If you bought when the C$ was strong and sold last year, expect a pretty hefty taxable gain.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best