After immigrating to the United States, do I have to pay taxes when I sell my house in China?

Nanyang real estate professional team answers your questions:

Some people worry that the U.S. government will start to tax people who hold American green cards around the world. But in fact, many of these statements are rumors and misunderstandings. So what is the real situation?

One of the misunderstandings:

Once the US green card is obtained, the United States will tax the global assets (including China) of the green card holders. This understanding is completely wrong.

Everyone should understand the difference between assets and income. Assets are the wealth you have acquired from the past to the present, and the income is your investment income or salary, bonus and commission income in that year. American global tax policy is aimed at personal income, not personal assets.

For example, suppose you have 20 million yuan of real estate for rent in China, and you get 2 million yuan of rent every year. Once you get the green card, the IRS will not ask you to pay taxes on the property of 20 million RMB, but only on your rental income of 2 million RMB.

Misunderstanding 2:

Once you get an American green card, all domestic income will be subject to American tax.

The United States has a tax exemption of nearly $90,000 per year for those who earn income from overseas. For example, if both husband and wife get a green card and each person earns $6,543,800+from China every year, then if they file tax returns separately, after deducting the tax allowance of $90,000, each person only needs to file tax returns for $6,543,800+every year.

And this 1 10,000 USD, if you have paid taxes in China or have any business expenses in the United States, you can still enjoy the deduction, so after deducting the expenses, it is estimated that each person only needs to pay 65,438 USD+0,000-2,000 USD per year.

Myth 3:

Once the green card is obtained in the United States, the green card holder's China company also needs to pay American tax. This is another completely wrong understanding.

Global taxes in the United States are aimed at individual green card holders. If the green card holder owns the shares of China company and the profits generated by China company are not distributed to the green card holder in the form of dividends, then the green card holder does not need to pay US tax for the China company he owns.

For example, if the annual income of the China company owned by the green card holder is RMB 6.5438+million, but the green card holder, as a shareholder, does not receive dividends from the company, then there is no need to pay US tax on the profits of the China company of RMB 6.5438+million.

Myth 4:

The IRS's tax inspection is very strict, and once it is discovered, it will go to jail. This is another misunderstanding.

The IRS has questions about the cost of tax inspection. Generally, the number of spot checks every year is only 65438+ 0% of the total tax return.

According to relevant data, the focus of tax inspection by the IRS is high-income people, that is, people whose annual tax return income is more than 500- 1 10,000 dollars. Because once the IRS checks the tax, it will cost tens of thousands of yuan of manpower and material resources, and once it finds that the tax is underpaid, in most cases, taxpayers can only be required to pay the tax that has been missed plus appropriate interest (generally 10% interest). If you are not sure to find out tens of thousands of tax evasion from tax inspection, it will really outweigh the benefits.