Discussion:Seems like an easy question? Sale of foreign residence
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| {{ForumReplyPost|UserID=Kevinh5|Date=30 May 2007|Text=yes to the first question}} | {{ForumReplyPost|UserID=Kevinh5|Date=30 May 2007|Text=yes to the first question}} | ||
| - | {{ForumReplyPost|UserID=IntlTax|Date=30 May 2007|Text=The Taxpayers should have reporting the transport of the travelers checks on [http://www.sec.gov/about/offices/ocie/aml2007/fin105_cmir.pdf FinCEN Form 105]. The gain would be taxable in the U.S. but the gain may qualify for the section 121 exclusion on the sale of a principle residence. If the sale does not qualify for the section 121 exclusion and foreign taxes were paid, the Taxpayers can claim foreign tax credits (subject to certain limitations). The Taxpayers would not have any reporting requirement if the cash was transferred to the U.S. through a bank. If the Taxpayers have had an interest in a foreign bank account with a balance of more than US$10,000 during the year, then they need to file Form TD F 90-22.1.}} | + | {{ForumReplyPost|UserID=IntlTax|Date=30 May 2007|Text=The Taxpayers should have reporting the transport of the travelers checks on [http://www.sec.gov/about/offices/ocie/aml2007/fin105_cmir.pdf FinCEN Form 105]. The gain would be taxable in the U.S. but the gain may qualify for the section 121 exclusion on the sale of a principle residence. If the sale does not qualify for the section 121 exclusion and foreign taxes were paid, the Taxpayers can claim foreign tax credits (subject to certain limitations). The Taxpayers would not have to report the transfer of funds to the U.S. if the cash was transferred to the U.S. through a bank. If the Taxpayers have had an interest in a foreign bank account with a balance of more than US$10,000 during the year, then they need to file Form TD F 90-22.1.}} |
Revision as of 18:05, 30 May 2007
Discussion Forum Index --> Tax Questions --> Seems like an easy question? Sale of foreign residence
| 30 May 2007 | |
| Taxpayers are US citizens who lived in South America, owned a home there which they sold in late 2005. The came to USA in early 2006 with travelers checks for a portion of the proceeds of the sale. They declared this income upon arriving. The remainder of the proceeds is in a SA bank and they transfer funds from that account to their US bank. First, if they were US citizens when they sold the foreign residence, is that sale reportable/taxable in US? Do they have any kind of reporting requirement on the monies transferred to US? I would gladly research this if someone could let me know where. I just can't find anything on it. Thank you. | |
| 30 May 2007 | |
| The Taxpayers should have reporting the transport of the travelers checks on FinCEN Form 105. The gain would be taxable in the U.S. but the gain may qualify for the section 121 exclusion on the sale of a principle residence. If the sale does not qualify for the section 121 exclusion and foreign taxes were paid, the Taxpayers can claim foreign tax credits (subject to certain limitations). The Taxpayers would not have to report the transfer of funds to the U.S. if the cash was transferred to the U.S. through a bank. If the Taxpayers have had an interest in a foreign bank account with a balance of more than US$10,000 during the year, then they need to file Form TD F 90-22.1. | |
