Sale of Property

[ILLMAS]

TP is going to sell property and land in another country and she wants to bring in the profit of sale into the U.S. to invest. Is there a form I will need to prepare to declare the money she brings in?

[ILLMAS]

I will answer my own question, after doing some research, the sale of foreign property and the TP is a US residence, then it treated exactly if the sale occurred in the US. TP gets credit for foreign taxes paid.

[jainen]

>>I will answer my own question<<

Wasn't your question about bringing money into the country, rather than about selling property?

[JohnH]

Your client will probably be required to file form TF F 90-22.1, especially if the proceeds from the sale are deposited in a foreign account prior to being transferred to the US. Of course, she may already be filing it anyhow for a number of reasons, but if not then this transaction may trigger the requirement due to the questions on Schedule B, Line 7.

[ILLMAS]

>>I will answer my own question<<

Wasn't your question about bringing money into the country, rather than about selling property?

Well I thought it was a simple process of just declaring the money brought in to US with the US Customs, but after speaking to a retired IRS agent, he was telling me since she is a U.S. resident, the sale of the property has to be declared also in the U.S. (Sch D or Sch E + 4797, depending on the us in the forgien country), therefore paying and tax due. By declaring the sale, she can bring in the money and pay the tax, then invest on how she pleases. Any thoughts?

[jainen]

>>By declaring the sale, she can bring in the money<<

I still think you are mixing up two separate questions. Of course she must report taxable sales on her income tax return, but that does not give her the right to move money across international borders.