I moved to France in June 2016 for a new job. I now need to doe my French taxes for 2016.
I work for an intergovernmental organization, and my French income is exempt from all French taxes. I also make less here than the cap for the foreign earned income tax exclusion, so I don't need to pay any U.S. taxes on the French income either. So this part is pretty easy.
My main confusion is that I had not realized that I needed to declare my American income on my French taxes. All of my American income was before I moved to France, and based on research, it looks like there is an agreement with France that would preclude me from being taxed by France on that income. So it seems like I'm in the clear here. Does that sound right?
The bigger issue is that I was planning to put my U.S. house on the market in a few weeks. I'm expecting to make about $250k in profit on the sale, which would tax free in the U.S. because of the Home Sale Tax Exclusion. Since I have to declare U.S. income on my French taxes, will I be expected to pay French taxes on the profit from selling the house? If so, I may need to rethink the sale.
Thanks so much in advance! Happy to answer any questions.
Submitted April 28, 2017 at 05:54AM by bury_hill http://ift.tt/2paPLN6
