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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4357
Experience:  FCCA FCMA CGMA ACIS
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My son sold a plot in Colorado after 4 years as he only got

Customer Question

My son sold a plot in Colorado after 4 years as he only got to see it 2 weeks a year and could not leave a trailer on it. Taxes were with held on the sale which was sold for $2000
less than he paid for it. How can we get this refunded ? He does not pay tax in UK.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
If this was UK tax deducted then he must take the matter up with HMRC in the UK.
If these are Federal or state taxes in the USA then this is a matter for the IRS or the individual state. Federal Capital Gains Tax (CGT) is payable on sale, but is complex. As a loss was sustained there would be no tax anyway. Most States charge capital gains as part of income, but here again there is no tax due. Non residents are subject to a 10% withholding tax on sale of property. this can be reclaimed from IRS where there is no liability to Federal Tax.
You can read about Colorado CGT for non Colorado residents here:
http://business-finance.yoexpert.com/taxes-4642/do-non-residents-pay-colorado-capital-gains-tax-44394.html
I do hope I have been able to shed some light on your son's position. This is, of course, an essentially UK based tax information site.