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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2863
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I am a US citizen and permanent resident. I sold a small

Customer Question

Hi,
I am a US citizen and permanent resident. I sold a small property in a foreign country which I co-owned.
I would like to know if I owe taxes in US.
Thanks,
G.
Submitted: 3 months ago.
Category: Tax
Expert:  Barbara replied 3 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

As a U.S. citizen, you are required to report and pay tax on your worldwide income. You will report the sale of the property and pay any tax due on your U.S. tax return. You will also receive a credit for any taxes paid to the foreign country for the sale.

https://ttlc.intuit.com/questions/2224616-if-i-live-in-the-us-and-sell-a-second-home-in-a-foreign-country-1-what-portion-if-any-of-the-sale-do-i-have-to-claim-as-income-and-2-do-i-have-to-pay-any-additional-tax-capital-gains-on-the-sale-of-the-property

You will pay capital gains tax, if any, based on the difference between your basis (what you paid for the property) and the selling price.

For example, if you purchased the property for $50,000 and sold if for $75,000, you will pay capital gains tax on $25,000. In your case, if you co-owned the property with someone else 50/50, you will report half the basis, half the sales price and pay capital gains tax on half of the difference.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 3 months ago.

Just following up with you to see if you have any other questions or concerns. If so, please let me know, and I will be happy to assist you further.

Best regards,

Barb

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