Inherited Home Title: Sale / Transfer of Proceeds to U.S.

[NachoBroadway]

Greetings everyone, I'm new to the board despite being a long time lurker. First and foremost I give thanks to this amazing resource platform for insight to the real life of living/doing business in D.R.

I have a few questions on real estate title work (popular subject), sale of a home and transferring funds from a real estate transaction.

My mother passed away and has left my sister and I with a property in Santo Domingo that does not have a title. We're both Dominican residents born in the U.S. I live in U.S., she lives and works in D.R. It is my childhood home. We have found the original seller's agreement between the original owner and my mother. I have consulted a recommended lawyer to help acquire a title.

The home is currently in poor condition and an eye-soar due to it being vacant and thieves consistently breaking in to hide, and steal fixtures and metal. I could repair it and place additional security measures, however, the neighbors are commercial businesses and after 6pm the area is an open field for thieves. Despite advice I've received, I do not want to repair and rent in the meantime due to previous bad experiences with tenants. Luckily I have a neighbor next door that watches it during the day and informs me of any issues. My goal is to sell the home as soon as the title work is completed and use the proceeds to purchase a multi-family in the U.S.

My questions:

1. Is there a way to complete seal off a vacant home? I know in the U.S. there are companies that place temporary metal blockades on windows, which I assume isn't common here because even that would get sold for scraps.

2. For the sale of the home. Any recommended real estate agents?.. in addition to listing it myself and selling it privately. I've seen Sotheby's recommended here.

3. Funds from a completed real estate transaction. Would I initially deposit the proceeds into a D.R. bank account and then wire transfer the funds to my U.S. accounts? Would I pay U.S. taxes on the full sale amount or can I roll the funds into an investment property in the U.S. and avoid capital gains taxes?

Thank you for any insightful, helpful and comprehensive responses. Advise everyone with assets to do estate planning with your loved ones.

 

[JD Jones]

May I ask where it's located?

As far as security is concerned, you could block up the holes as a temporary measure. That would keep folk out.

 

[playacaribe2]

Greetings everyone, I'm new to the board despite being a long time lurker. First and foremost I give thanks to this amazing resource platform for insight to the real life of living/doing business in D.R.

I have a few questions on real estate title work (popular subject), sale of a home and transferring funds from a real estate transaction.

My mother passed away and has left my sister and I with a property in Santo Domingo that does not have a title. We're both Dominican residents born in the U.S. I live in U.S., she lives and works in D.R. It is my childhood home. We have found the original seller's agreement between the original owner and my mother. I have consulted a recommended lawyer to help acquire a title.

The home is currently in poor condition and an eye-soar due to it being vacant and thieves consistently breaking in to hide, and steal fixtures and metal. I could repair it and place additional security measures, however, the neighbors are commercial businesses and after 6pm the area is an open field for thieves. Despite advice I've received, I do not want to repair and rent in the meantime due to previous bad experiences with tenants. Luckily I have a neighbor next door that watches it during the day and informs me of any issues. My goal is to sell the home as soon as the title work is completed and use the proceeds to purchase a multi-family in the U.S.

My questions:

1. Is there a way to complete seal off a vacant home? I know in the U.S. there are companies that place temporary metal blockades on windows, which I assume isn't common here because even that would get sold for scraps.

2. For the sale of the home. Any recommended real estate agents?.. in addition to listing it myself and selling it privately. I've seen Sotheby's recommended here.

3. Funds from a completed real estate transaction. Would I initially deposit the proceeds into a D.R. bank account and then wire transfer the funds to my U.S. accounts? Would I pay U.S. taxes on the full sale amount or can I roll the funds into an investment property in the U.S. and avoid capital gains taxes?

Thank you for any insightful, helpful and comprehensive responses. Advise everyone with assets to do estate planning with your loved ones.

First things first.

Get the title, then decide what to do.

Obtaining clear title could take a very long time.


Respectfully,
Playacaribe2

 

[Winkeladvocat]

Greetings everyone, I'm new to the board despite being a long time lurker. First and foremost I give thanks to this amazing resource platform for insight to the real life of living/doing business in D.R.

I have a few questions on real estate title work (popular subject), sale of a home and transferring funds from a real estate transaction.

My mother passed away and has left my sister and I with a property in Santo Domingo that does not have a title. We're both Dominican residents born in the U.S. I live in U.S., she lives and works in D.R. It is my childhood home. We have found the original seller's agreement between the original owner and my mother. I have consulted a recommended lawyer to help acquire a title.

The home is currently in poor condition and an eye-soar due to it being vacant and thieves consistently breaking in to hide, and steal fixtures and metal. I could repair it and place additional security measures, however, the neighbors are commercial businesses and after 6pm the area is an open field for thieves. Despite advice I've received, I do not want to repair and rent in the meantime due to previous bad experiences with tenants. Luckily I have a neighbor next door that watches it during the day and informs me of any issues. My goal is to sell the home as soon as the title work is completed and use the proceeds to purchase a multi-family in the U.S.

My questions:

1. Is there a way to complete seal off a vacant home? I know in the U.S. there are companies that place temporary metal blockades on windows, which I assume isn't common here because even that would get sold for scraps.

2. For the sale of the home. Any recommended real estate agents?.. in addition to listing it myself and selling it privately. I've seen Sotheby's recommended here.

3. Funds from a completed real estate transaction. Would I initially deposit the proceeds into a D.R. bank account and then wire transfer the funds to my U.S. accounts? Would I pay U.S. taxes on the full sale amount or can I roll the funds into an investment property in the U.S. and avoid capital gains taxes?

Thank you for any insightful, helpful and comprehensive responses. Advise everyone with assets to do estate planning with your loved ones.

Inheritance tax seems to be out, but on what basis do you think you have to pay capital gains tax? Approximately how much was the property worth (in US-Dollars) at the moment of inheritance and how much is it worth today?

 

[NachoBroadway]

Inheritance tax seems to be out, but on what basis do you think you have to pay capital gains tax? Approximately how much was the property worth (in US-Dollars) at the moment of inheritance and how much is it worth today?

I believe upon bringing the funds into the U.S. banking system would initiate a taxable incident. My goal would be to perform a 1031 exchange of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.

The property value has increased from $150k to $198k

 

[playacaribe2]

I believe upon bringing the funds into the U.S. banking system would initiate a taxable incident. My goal would be to perform a 1031 exchange of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.

The property value has increased from $150k to $198k

If you intend to do a 1031 exchange.................you cannot receive the funds. They must, at closing, be immediately transferred to a third party intermediary..........or you lose the ability to do a tax free exchange.

FYI: Other rules also apply.

Respectfully,
Playacaribe2

 

[NachoBroadway]

If you intend to do a 1031 exchange.................you cannot receive the funds. They must, at closing, be immediately transferred to a third party intermediary..........or you lose the ability to do a tax free exchange.

FYI: Other rules also apply.

Respectfully,
Playacaribe2

Thank you, I researched and found more information pertaining to that. Very helpful

 

[zoey_kat]

Thank you, I researched and found more information pertaining to that. Very helpful

Unfortunately, you would not be able to do a 1031 exchange from the DR to the US.

 

[playacaribe2]

Unfortunately, you would not be able to do a 1031 exchange from the DR to the US.

True.

Buy you can do a 1031 tax free exchange to another property within the DR.


Respectfully,
Playacaribe2

 

[Winkeladvocat]

I believe upon bringing the funds into the U.S. banking system would initiate a taxable incident. My goal would be to perform a 1031 exchange of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.

The property value has increased from $150k to $198k

Can't you just report to have inherited real estate property for $198K (or whatever amount you decide to give them)? I understand capital gains tax applies at the moment you sell the property for a higher than the originally declared amount. But just bringing the funds into the US banking system should not constitute a taxable event unless I am missing something. Let me know your thoughts, this is interesting.