Selling property abroad

Selling property abroad
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#1

Hi all!

I recently sold a property abroad, in my homecountry. I am wondering if I have to pay taxes here in the US for it? I have only been a resident since March of 2018.

Thank you!


#2

Hi there! :wave: Welcome to the NerdWallet community!

Interesting question you’ve posed here! Looking forward to hearing what our community members have to share.

To be sure I’m understanding correctly:

  • You currently have residence status in the U.S. (since March)
  • The property you recently sold is not in the U.S.

Do I have that right?


#3

Hi Cori!

You are correct!


#4

Thanks for clarifying! My understanding, based on info from the IRS website is that, for U.S. residents the rules for filing income, and estate tax returns (and for paying estimated tax) are generally the same whether one is living in the U.S. or abroad.

That being said, I would strongly suggest enlisting the help of a tax specialist because there are likely many considerations based on the type of property you sold - if it was a residence or rental property for example, and other circumstances unique to your situation. A qualified tax expert can help with things like how to report the sale, capital gains, and also any potential foreign tax credits you may qualify for.

Hopefully others will weigh in here with more ideas - feel free to post any followup questions. Meanwhile, this resource may help point you in the right direction: