Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
Hi, my name is ***** ***** I can help. U.S. citizens' and permanent residents are taxed on their income received worldwide. To report the sale of property not used in a trade or business, use Form 8949 with either box C, for property held less than one year, or box F, for property held for one year or more. Include a description of the property and its location, the amount received for it and your basis in the property. The sale then gets carried over to Schedule D and then Form 1040, line 13 as a capital gain.
If the foreign country taxed you on the gain from the property sale, use Form 1116 to claim the foreign tax credit, which will offset your U.S. tax up to the amount of U.S. tax on the property gain.
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