How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 37822
Experience:  Retired (mostly)
Type Your Tax Question Here...
socrateaser is online now
A new question is answered every 9 seconds

Do I have to pay tax in US on the profit I made, after expenses

This answer was rated:

Do I have to pay tax in US on the profit I made, after expenses on property sold in New Zealand. I am a US citizen and live in US
U.S. citizens are taxed on their income from all sources earned worldwide. If you had a profit on a property sold in NZ, then you must pay capital gains tax on that property, no different than if the property.

The US-NZ Tax Treaty, Article 13 permits the NZ authorities to tax the capital gains in NZ. However, the IRS will also tax the capital gain, but you are entitled to a foreign tax credit for the tax paid in NZ. This will reduce your net tax to no more than what you would have owed had the property been located in the USA.

Please let me know if my answer is helpful, or if I can provide further clarification or assistance.

And, thanks for using!
Customer: replied 2 years ago.

New Zealand does not have capital gains tax on property, so therefore there is only the US tax after expenses. I was just on the NZ website to clarify this.

Please review this guide (scroll to page 5) from the NZ tax authorities. It indicates that where a person purchases property with the intent to make a profit, that the profit is taxable. Consequently, NZ does in fact have a capital gains tax, which may apply to your circumstances.


I hope that you will reconsider your previous rating and provide a positive rating of my services.


Thanks in advance.

socrateaser and other Tax Specialists are ready to help you

Related Tax Questions