I have sold my property in a foreign country and paid taxes on the sale there. I need to bring the money made to the US. Will I have to pay taxes on that money again?
2007-03-21 16:14:32 · 3 answers · asked by sandriki 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you are a US citizen or resident alien, you need to report the sale on your US tax return. You don't pay tax on the money you received, you pay tax on any gain from the sale.
2007-03-21 19:38:19 · answer #1 · answered by tma 6 · 0⤊ 0⤋
Just to add to tma's correct answer, you can probably take a credit for the foreign taxes paid. File Form 1116 with your tax return to claim any credit for those taxes.
The net result is that you'll pay tax at the higher of the US and the foreign tax rate but you won't be taxed twice.
2007-03-21 20:15:31 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
In Canada, my husband - a Canadian citizen - and I - a dual Canadian/ US citizen - sold our house last year. We owned it jointly. As a dual citizen, to I have to pay capital gains tax to the US, being both a Canadian and US cititzen?
2015-01-25 12:01:36 · answer #3 · answered by Lois 1 · 0⤊ 0⤋