Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

How to report the sale of a property outside US? How to

Customer Question
claim the taxes paid abroad...
How to report the sale of a property outside US? How to claim the taxes paid abroad on the profit made by selling property overseas?
Submitted: 7 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
10/2/2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,201
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi - My name's Lane.

...

THe income is reported as a capital gain, just as if the property were in the US (Assuming you are a tax resident - U.S. Citizen, Green Card Holder, or one passing the Substantial Presence test).

...

Then you can take the FTC (Foreign Tax Credit). See this: https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit

...

You may also be able to take a treaty based position, depending on the country and the terms of any existing double taxation treaty between the U.S. and that country.

Ask Your Own Tax Question
Customer reply replied 7 months ago
Foreign country is India
Customer reply replied 7 months ago
Do we have to show the details of purchase n sale or just profit made? What kind of support documents needed
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

You'll just show the capital gain on schedule D (actually the "feeder form" for that is form 8949 which will then flow to the schedule D)

...

Capital gain = Sales price - basis

...

Where Basis = either purchase price + improvements OR fair market as of the date of death, it you received through inheritance.

...

Then the Foreign tax credit is taken on form 1666, based purely on the actual taxes paid in India

Ask Your Own Tax Question
Was this answer helpful?
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,201
14,201 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Husband and sister inherited property in Canada. Their
Husband and sister inherited property in Canada. Their residency is in the states. Their cabin in Canada is just a summer place so they only go up during the summertime. This summer they are fixing up… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,213 satisfied customers
A HOUSE WAS INHERITED AND USED AS RENTAL PROPERTY FOR 2
A HOUSE WAS INHERITED AND USED AS RENTAL PROPERTY FOR 2 YEARS THEN THE NEXT 2 YEARS IT WAS HELD FOR INVESTMENT AND IMPROVEMENTS MADE TO BE SOLD. HOW TO REPORT THE SALE (IT WAS A GAIN) AND RECAPTURE TH… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,213 satisfied customers
I need help with a Schedule D form for 2016. It's about farm
It's about farm land I sold. The property was inherited. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I have a question regarding sale of property...capital gain
I have a question regarding sale of property...capital gain issue. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Will I owe capital gains taxes on the sale of my home
Will I owe capital gains taxes on the sale of my home (either federal or state taxes)? Details: * I have lived in CA for the past 8 years (renting) * The home I am selling is in FL * I purchased the h… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,213 satisfied customers
Capital gains tax on nonresident alien. A foreign trust owns
Capital gains tax on nonresident alien. A foreign trust owns 100% of shares of a US C corporation. C corporation is privately held (not publicly traded) and conducts business in the US. Then C corpora… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
The federal government gives you a tax credit for foreign
The federal government gives you a tax credit for foreign taxes paid in another country Does New York State offer a tax credit for the same If yes , where would it be found, on what form… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
IRS tax question: Say my income before capital gains is
IRS tax question: Say my income before capital gains is $400,000 and after capital gains is $250,000, do the capital gains get 20% treatment and the rest of the income get the lower treatment from $0-… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Are we able to adjust our Taxes with capital gains used for
Are we able to adjust our Taxes with capital gains used for college … read more
abci168
abci168
Principal
27 satisfied customers
I have a question relating to Schedule D and calculation of
I have a question relating to Schedule D and calculation of capital gains and property depreciation on a home sale in 2017 … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,213 satisfied customers
I am having trouble understanding foreign tax credits,
I am having trouble understanding foreign tax credits, Hopefully in simple language you can help me understand it. I have a carryforward foreign tax credit from a sale of property in Israel. I paid th… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I used a calculator to figure capital gains tax on the sale
I used a calculator to figure capital gains tax on the sale of my rental property in CA... do the figures look reliable? I am a hawaii resident. Will there be other taxes due besides capital gains? Th… read more
Carter McBride
Carter McBride
LLM
1,052 satisfied customers
My question relates to avoiding the double taxation related
My question relates to avoiding the double taxation related to sale of stock options reported on 1099-B and the W-2 !2b "V" box amount. I understand that I need to adjust the cost basis for the sales … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Iowa Income Tax. Is 100% of capital gains on the sale of a
Iowa Income Tax. Is 100% of capital gains on the sale of a rental property deductible if the requirement is met for hours spent for management of the property? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
How do you decide whether to use schedule d worksheet versus
how do you decide whether to use schedule d worksheet versus line 44 work sheet in 1040 instructions … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I don't know how to fill out the schedule d tax worksheet or
I don't know how to fill out the schedule d tax worksheet or qualified dividends and capital gain tax worksheet … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
What would the rate of capital gains tax on income property
what would the rate of capital gains tax on income property held for 25 years by an owner who of late had and will have income of less than20,oooIt is also my understanding we (my brother and I) are e… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
What forms do i use to calculate my term capital gain on a
What forms do i use to calculate my long term capital gain on a sale of a 3 fam house … read more
Carter McBride
Carter McBride
LLM
1,052 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x