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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I am selling a house in Guatemala and the amount will be

Customer Question

I am selling a house in Guatemala and the amount will be transferred to our account in the States, here in Guatemala they de-value the property to avoid paying higher taxes and pay with two checks, but I believe for tax purposes I need to have paper work that shows the full amount, so it matches what I deposit and what I file on my taxes, in case of being audited, the lawyer here said he can give me a document with the correct amount and they will file another document with the government here. What can I say, its corrupt here. Will that document be ok for the IRS in case of an audit?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

I am originally from eastern Europe and I can assure your it is not just in Guatemala. Anyway, yes as long as you have something reasonably legal looking, IRS will accept it. To be honest with you, IRS really don't have a choice. They cannot control foreign governments or legal paperwork or make foreign authorities to file out official IRS form. There are not standards when it comes to proving foreign transactions. You use what you can get. While it is up to you to proof the deduction, it is up to IRS to proof the income.