Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Selling property overseas

Selling property overseas

Old Mar 3rd 2019, 12:42 am
  #1  
Just Joined
Thread Starter
 
Joined: Mar 2019
Posts: 5
callice is an unknown quantity at this point
Default Selling property overseas

Hi all, long time lurker on this forum but need to ask a question and hoping you knowledgable folks can help! Currently doing the US 2018 tax return (such fun) and wanted to query something:

Have been living in the USA as a resident alien since 2017. My name was transferred in 2015/16 to be the joint owner of a family property in Europe, my stake in this property is worth around 50k Euros.

Family is now selling this property and I am wondering in regards to if / when the property is sold:
  • If / how I should declare this on my US tax return?
  • If it needs to be declared, what will the IRS do with this information?
  • What will the criterion be for any tax liability on the 2019 return?

I didn't declare this property in 2017 as I was not aware it was relevant, but now it might be sold, I am not so sure!
So I may need to fill in a tax amendment form or something too..?

Thanks in advance for any info!
callice is offline  
Old Mar 3rd 2019, 7:35 am
  #2  
BE Enthusiast
 
Joined: Nov 2012
Posts: 768
Cook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond repute
Default Re: Selling property overseas

From a US perspective you take on the basis of the person who gave it to you; not the market value on the date received. Your share of the gain is taxed at US tax rates; using spot exchange rates for the basis and the disposal.
Cook_County is offline  
Old Mar 3rd 2019, 12:17 pm
  #3  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 45,651
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Selling property overseas

What is the basis on which your name was added to the title? Was it a gift, or was it an inheritance? Or was there some purchase consideration - payment, cancellation of a debt, or exchange of other assets?
Pulaski is offline  
Old Mar 3rd 2019, 2:38 pm
  #4  
Lost in BE Cyberspace
 
Hotscot's Avatar
 
Joined: Jun 2011
Location: Los Angeles
Posts: 6,156
Hotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond reputeHotscot has a reputation beyond repute
Default Re: Selling property overseas

'If it needs to be declared, what will the IRS do with this information?'

Do with it? Probably nothing, although it could come up in an audit if that ever happens.
Low possibility. Not scary unless you are willfully fraudulent.

State your interest in the property, your basis, work out your profit, report and pay any tax due. End of.
Little to be concerned about.

(I was audited recently and, as a result, they sent me a large check. Still can't figure out why, but oh well...)

Last edited by Hotscot; Mar 3rd 2019 at 2:42 pm.
Hotscot is offline  
Old Mar 5th 2019, 3:36 am
  #5  
Just Joined
Thread Starter
 
Joined: Mar 2019
Posts: 5
callice is an unknown quantity at this point
Default Re: Selling property overseas

Originally Posted by Cook_County View Post
From a US perspective you take on the basis of the person who gave it to you; not the market value on the date received. Your share of the gain is taxed at US tax rates; using spot exchange rates for the basis and the disposal.

That's helpful to know, thank you for the reply!
callice is offline  
Old Mar 5th 2019, 3:39 am
  #6  
Just Joined
Thread Starter
 
Joined: Mar 2019
Posts: 5
callice is an unknown quantity at this point
Default Re: Selling property overseas

Originally Posted by Pulaski View Post
What is the basis on which your name was added to the title? Was it a gift, or was it an inheritance? Or was there some purchase consideration - payment, cancellation of a debt, or exchange of other assets?
Thanks for your reply! It was given as a gift.
callice is offline  
Old Mar 5th 2019, 3:44 am
  #7  
Just Joined
Thread Starter
 
Joined: Mar 2019
Posts: 5
callice is an unknown quantity at this point
Default Re: Selling property overseas

Originally Posted by Hotscot View Post
'If it needs to be declared, what will the IRS do with this information?'

Do with it? Probably nothing, although it could come up in an audit if that ever happens.
Low possibility. Not scary unless you are willfully fraudulent.

State your interest in the property, your basis, work out your profit, report and pay any tax due. End of.
Little to be concerned about.

(I was audited recently and, as a result, they sent me a large check. Still can't figure out why, but oh well...)

Good to know, thank you! Wanted to make sure I was doing the right thing.

Nice that you got a large check! It's normally the other way around, enjoy that!
callice is offline  
Old Mar 5th 2019, 12:20 pm
  #8  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 45,651
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Selling property overseas

Originally Posted by callice View Post
Thanks for your reply! It was given as a gift.
OK, so as Cook_Co said, your gain for CGT purposes is calculated based on the donor's acquisition cost. Also if there is CGT on the sale in the country of where the property is located, your share of that will be a credit against US CGT.
Pulaski is offline  
Old Mar 9th 2019, 3:12 pm
  #9  
Just Joined
Thread Starter
 
Joined: Mar 2019
Posts: 5
callice is an unknown quantity at this point
Default Re: Selling property overseas

Originally Posted by Pulaski View Post
OK, so as Cook_Co said, your gain for CGT purposes is calculated based on the donor's acquisition cost. Also if there is CGT on the sale in the country of where the property is located, your share of that will be a credit against US CGT.
Ok that makes sense, thanks so much!
callice is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us Archive Advertising Cookie Policy Privacy Statement Terms of Service

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.