Question

If I sell a property in Mexico (no construction), do I need to report it in my Tax form and pay taxes on that sale even though I payed taxes of the sale in Mexico?

Forum|Forum|7 years ago
June 3, 2019
12 replies
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TurboTax Deluxe Online

Employee

Are you a U.S. Citizen or green card holder? What kind of property did you sell in Mexico? Was it your primary residence? Farmland? A 2nd home? Raw land? Commercial property? Some other kind of investment property? You need to provide a lot more details for the reader to work with here. But basically, if a U.S. Citizen or green card holder, you are required to report all income from all sources world wide, regardless of where that income came from or how you obtained it.

J

jafloreslAuthor

Hello, I'm a US citizen by naturalization (I was born in Mexico), the property is just raw land and a church is going to buy it. They reside in the US but also have Mexican roots and the payment will be in US dollars with US bank check that I plan to deposit in my US bank account. Thanks for your help.

Carl11_2

Employee

Then you'll report the sale in the Investments section under the Personal Income tab. Specifically, in Stocks, Bonds, Mutual Funds, Other. When asked if you have a 1099-B, select NO and press on.

T

TaxGuyBill

Employee

You will also report the information about that income tax you paid to Mexico for the "Foreign Tax Credit".

J

jafloreslAuthor

Thanks for your quick response and help.

Carl11_2

Employee

Ah yes, I totally forgot about the foreign taxes paid. You'll deal with that completely separate from your reporting of the sale, under the Deductions & Credits tab in the Estimates and Other Taxes Paid section of the program.

J

jafloreslAuthor

Thank you so much.

J

jafloreslAuthor

Another question regarding this topic, let's say I sold that property in $130,000, I payed the Taxes in Mexico for this sell in the amount of $13,000. Once I declare this in my Tax form, approximate, how much taxes do I need to also pay in the US for this sell? Thanks for your help, it is very much appreciated.

Carl11_2

Employee

You really need to work it through the program and see for yourself. There's just to many variables to deal with, and some of those variables may be to personal in nature for your to willingly share in this public forum.
I'm not sure, but I "think" the taxcaster might be able to give you a rough estimate. Just keep in mind that it's *rough*. <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/calculators/taxcaster/">https://turbotax.intuit.com/tax-tools/calculators/taxcaster/</a>

J

jafloreslAuthor

Thanks Carl.