Sold cottage in Norway

[Possi]

My client and her sister inherited a cottage in Norway many years ago. They sold it last year and paid tax in Norway. I know this is a taxable event for her.

The sale goes on Sch D.

Then, the 1116 will reflect the net income from the sale and the foreign tax paid to Norway.

I am filing an extension for her because it's too late for me to get her done before deadline. I haven't done a sale like this in all my 20 years.

I'll hum a chant, burn some incense, and pray I do this right!

hmmmmmmmmmm

The good news is that with this sale, she also moved her Norway savings account to the US, so no more FinCEN.

[Pacun]

Imagine that the sale occurred in the US. The basis is the FMV at the time of death. Then you calculate the gain on schedule D and file 1116 to get the credit for taxes paid in Norway.

Keep in mind that moving to a country doesn't mean that you are not a US citizen or Legal Permanent Resident, so FicCen might be needed.