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How to report foreign land sale?

Forum|Forum|6 years ago
June 5, 2019
2 replies
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where do I report the gains from the sales of land in foreign country?

TurboTax Premier Online

Best answer by Fern

As a US taxpayer, you worldwide income is subject to US taxes. You will recognize a gain or loss on the sale of the property in the same way you would if the property was located in the United States.

In Turbo Tax, the sale will be entered in the Investment section (unless you are a real estate professional, then it would be entered on Schedule C).
• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start at Stocks, Mutual Funds, Bonds, Other
• Respond Yes – you sold something
• Respond No – you did not receive a 1099B
• Choose Land as the asset sold

If you paid or accrued foreign taxes to a foreign country for this sale of land, you may be able to take either a credit or an itemized deduction for those taxes. Go through the Foreign Tax section in Deductions and Credits.
• Select Federal Taxes
• Select Deductions and Credits
• Select Show More at Estimates and Other Taxes Paid
• Select Start next to Foreign Taxes

F

FernAnswer

As a US taxpayer, you worldwide income is subject to US taxes. You will recognize a gain or loss on the sale of the property in the same way you would if the property was located in the United States.

In Turbo Tax, the sale will be entered in the Investment section (unless you are a real estate professional, then it would be entered on Schedule C).
• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start at Stocks, Mutual Funds, Bonds, Other
• Respond Yes – you sold something
• Respond No – you did not receive a 1099B
• Choose Land as the asset sold

If you paid or accrued foreign taxes to a foreign country for this sale of land, you may be able to take either a credit or an itemized deduction for those taxes. Go through the Foreign Tax section in Deductions and Credits.
• Select Federal Taxes
• Select Deductions and Credits
• Select Show More at Estimates and Other Taxes Paid
• Select Start next to Foreign Taxes

E

Eva Dunne

Hello, is this the same action taken if foreign property was your principal place of residence and you have recently become a US resident for tax purposes?

T

ToddL99

If you sold your principal residence after becoming a US resident, enter the sale in the "Sale of Home interview of Personal Income > Less Common Income.

Second homes and land are entered as "investments" (as described by @Fern ).

Publication 523 (2019), Selling Your Home lists the rules for excluding the gain on the sale of your principal residence. Foreign properties are not excluded from this tax break.