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Posted by damiano
my story in a nutshell:
born in Italy, moved to the us at age 23, got married, became citizen, 6 years later i moved to UK with my wife to get a PhD, bought a house.
we’ve always filed taxes in April to IRS. Due to the fact that we both make less than the threshold set to pay taxes in the us, we never paid them. Last year we bought a house worth about 330k$ with a mortgage.
I also own a property in Italy that my parents bought under my name many years ago (15 years ago), before I even moved to the us and gained citizenship. The property has been rented and they have been taking the proceeds,. I’ve never reported the existence of this house in Italy mainly because i wasn’t really involved in it (buying it, renting it out, taking care of it etc), they have bought it for me as investment in the future, but the profits from renting it it’s theirs.
what will happen when eventually one day i move back to us and sell both properties? on the house in uk i will probably pay taxes on profit made (not sure there is a threshold there as well), but for the one in Italy, will I have to pay taxes on profits made from rental in the past 15 years?