Subject: Taxes on foreign transactions
Date: Mon, 09 Oct 2006
Is it required to report capital gains on the sale of real estate in a foreign country, even if the tax obligations for the foreign country are fulfilled? If yes, is it possible to get a tax credit for the foreign tax paid?
Date: Thu, 02 Nov 2006
U.S. citizens and residents of the United States are taxable on their worldwide income. Sales of properties located outside the U.S. by a U.S. citizen or resident should be reported on the U.S. income tax return. There may be a credit available for tax paid to the country where the property is located. You should probably get help from a professional tax return preparer on this matter.
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