Parents sold their property in the Philippines and asked their money to be sent to their bank account here.They have their green card. Will they have to pay taxes on that?
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2Where were your parents when they sold the house?– RonJohnCommented Jun 25, 2021 at 15:08
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If your parents are changing domicile from Philippines to the US (or other country), they should research the tax implications before they move. Figure out which countries they'll be considered resident in for tax purposes before they do this. It will likely constrain what month and year they can or should move. Are they nonresident US citizens? or Filipino citizens? or some third country? or dual citizens (which)?– smciCommented Jun 26, 2021 at 11:20
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They were here in the States when they sold it . It’s actually not a house they sold . I believe it was 2 lands combined– mariaCommented Jun 26, 2021 at 17:17
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1 Answer
Where they send their money isn't what makes the sale taxable, it is the sale itself which would be taxable or not. If your parents were residents in the US when the house was sold, it would likely need to be reported on their US tax returns. I am not familiar with the Philippine tax system to know if it was also taxable there - if it was, the US likely allows those taxes to be claimed as a reduction of US taxes otherwise owing.
If this is a large amount of potential tax, they should seriously consider hiring a competent foreign-tax accountant familiar with the US-Philippine tax treaty; likely going to cost >$1k to get the right answer [don't be tempted by a local accountant's offer to get things done for $100, which likely indicates a lack of expertise]. There may be other issues at play, such as it being a gain on a house, based on however the tax treaty between the two countries is structured [on which I have no knowledge].
answered Jun 25, 2021 at 15:21
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1Thank you for your help. I will definitely have to look into talking to an international tax accountant– mariaCommented Jun 26, 2021 at 17:18