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Showing results for tags 'earned income'.
I was surprised that a search for taxes did not lead me to anything about this so I'll ask it. If anyone can point me to a thread that covers this, great. Otherwise, any feedback I can get here would be great. Before I go investing in property I'd like to have some idea of how this works with the IRS, and I'm really ignorant of tax stuff re selling property. I understand that when you sell a property in Costa Rica you pay some fees and taxes to Costa Rica. But what about the IRS? What kind of tax burden does the IRS it you with? Is there a certain amount you can get as income from a property sale without owing taxes on it? Or do you pay IRS taxes no matter how much the sale is? (i.e.; I thought I heard something about the first $50k or so of income from a sale was not taxable; but I may have been dreaming! ;-D ) Is the IRS tax the same on raw land as it would be on a home? (in other words is income income or is income from a house sale different from income from a land sale, in the IRS's view?) I don't expect legal advice or tax advice here; I'm just looking for a general ball park idea and perhaps a link or two to more info on this, or anecdotal stuff like "I sold some land for $xx,xxx and paid $xxxx in taxes"... Just how BAD is the IRS hit on real estate profit from CR? So let's say I buy a property and sell it 10 years later for 5 times what it's worth. (I'm not saying that's practical to do, I'm just using this as an easy mathematical concept to deal with.) So let's say I paid $50k for the property and sell it for $250k. About how much of that $200k profit would the IRS want to take from me? I'm trying to get a feel for what my obligation is to the IRS would be for a sale of this type. And how much paperwork would I have to submit to the IRS? Would they need to know who sold it to me and when? How much I paid? etc. Or would they only need to know how much money I put in the bank from the sale, the title info and buyer? And I guess if you sell a property in CR you HAVE to have a bank account in CR, right? You can't conduct the whole thing using US banks, or US / Canada? What if the buyer was from, say, Canada or Mexico, for example? Would it matter where the buyer was from, from the IRS's standpoint? Or do they only care about the income the U.S. citizen made from it? Mostly I just want to know how much of a tax burden it is to sell a property for a profit in CR? And how complicated the IRS reporting is.