"LoTax" <lotax[at]hotmail.com> wrote:

- quote -

Under section 2523(i), the unlimited gift tax marital
deduction does not apply when the donnee spouse is not a US
citizen. The spouse is entitles to an annual exclusion
under 2503, but it's ten times the normal amount (which I
assume will be $120,000).

Stu

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Stuart A. Bronstein wrote:
- quote -

Stuart: I don't understand how the length of marriage,
state of residence, and source of funds matters. They are
married and jointly own their home. How they split the
sales proceeds is not a taxable event. Please explain.

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ysmrysmr[at]gmail.com wrote:

- quote -

Not to worry: Gifts between spouses are never taxed.
Neither income tax nor gift tax applies to them.

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ysmrysmr[at]gmail.com wrote:

- quote -

It depends on a lot of things. Which state do you live in?
How long have you been married? Where did the money come
from to make the initial down payment on the house? Where
did the money come from to make the mortgage payments for
the last ten years?

The answers to those questions will lead to other questions.
But until they are all answered, your question cannot be
answered with any certainty.

Stu

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We are husband and wife, and file 1040 jointly every year.
We are not US citizen nor green card holders, but US
residents (resident aliens) for US tax purpose. We are now
selling our primary residence that is jointly owned by us.
We have lived in this house for more than 10 years. After
selling this house, we would like to divide the proceeds
into half and half between us since we feel that both of us
contributed equally to build this asset. Then deposit each
half into respective personal bank account of us. The total
amount of proceeds will be about $500,000. I believe this
action of dividing the proceeds into half and half between
us, although one of us mostly paid mortgages, does not
produce any tax problem since we file 1040 jointly. One
concern is if the tax authority might see it as gift giving
from one spouse to the other, in which case paying some tax
may be necessary. Can some one confirm that this is not a
problem. Thank you very much.

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