Capital gain on oversea real estate

Forum|Forum|1 year ago
October 26, 2024
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I purchased an apartment overseas nine years ago as a US non-resident. The apartment value increased before I moved to the US with a working visa.

I obtained a US green card in recent years and sold overseas real estate this year. Can you suggest calculating the long-term capital gain, particularly on the cost basis? Thanks!

TurboTax Business Windows

Mike9241

sales price is what it is but needs to be converted to US $ see

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates#:~:text=You%20must%20express%20the%20amounts,pay%20or%20accrue%20the%20item.

cost basis

what you paid + closing costs converted to US $ for the year of purchase plus

capital improvements converted to US $ for the year paid plus.

selling expenses converted to US $ for the year of sale

qwer1234Author

I was not a US resident when purchasing the apartment. Its market value appreciated before I moved to the US. Can I use the market value at that moment as the cost base?

Also, can long-term capital loss in stock markets offset this capital gain?

AmeliesUncle

@qwer1234 wrote:
Can I use the market value at that moment as the cost base?

Also, can long-term capital loss in stock markets offset this capital gain?

No.

Yes.

Were there any loans/mortgages on the property? You could also have a gain or loss due to currency conversion with a loan. If that is the case, you'll want to go to a tax professional that specializes in Nonresident Aliens and/or international taxation.