How to report the money product of selling a property in Mexico?

Forum|Forum|7 years ago
June 1, 2019
2 replies
57 views

If i sold a property that i had in Mexico (not primary residence) and brought that money to my US bank account. How (if at all) shall i report that sell transaction in my 2015 tax statement?
I will file tax statement jointly with my wife.

Any advice how that could be reported, which section, if at all?

TurboTax Deluxe Online

Best answer by DS30

If you are a US citizen or resident, you are required to file a US tax return for income from all sources both domestic and foreign. Therefore, you will need to report this land sale (converted into US dollars) on your tax return as the sale of a capital asset.

To enter this transaction in TurboTax Online or Desktop, please follow these steps:

Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
Next click on “I’ll choose what I work on”
Scroll down the screen until to come to the section “Investment Income”
Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section) (see Screenshot #1)
The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
Since you did not receive a 1099-B, answer “no” to the 1099-B question
On the next screen you will enter the sales information as follows

Description – usually the address of the property sold
Date Sold – Date you sold the property
Date Acquired – Date you purchased the property
Sales Proceeds – Total amount received for the property (in USD)
Cost Basis – Amount you originally paid for the property plus any capital improvements to the property (in USD)
Adjustment Amount – leave this box blank (see attached screenshot #2)

Click this link for further information about reporting the sale of a capital asset

DS30Answer

Level 12

To enter this transaction in TurboTax Online or Desktop, please follow these steps:

Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
Next click on “I’ll choose what I work on”
Scroll down the screen until to come to the section “Investment Income”
Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section) (see Screenshot #1)
The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
Since you did not receive a 1099-B, answer “no” to the 1099-B question
On the next screen you will enter the sales information as follows

Description – usually the address of the property sold
Date Sold – Date you sold the property
Date Acquired – Date you purchased the property
Sales Proceeds – Total amount received for the property (in USD)
Cost Basis – Amount you originally paid for the property plus any capital improvements to the property (in USD)
Adjustment Amount – leave this box blank (see attached screenshot #2)

Click this link for further information about reporting the sale of a capital asset

Carl

Level 11

You report that sale as you would any real estate property sale. Where that property is on the planet rally doesn't matter. If it was classified as rental real estate at the time of the sale, then you'll report the sale in the Rental & Royalty Income (SCH E) section of the program. If the property was investment property *OTHER* than rental real estate (i.e.; buy and hold and sell when value increases) you'll report the sales in the Investments section. If it was personal use property you'll report the sale in the "sale of home (gain or loss)" section of the program. Do note that if it was personal use (primary residence, or 2nd home) then if you sold at a loss the loss is not deductible. In such a situation you don't have to report the sale at all *UNLESS* you received a 1099-S reporting any proceeds from the sale.

As for reporting the transfer of any money from any foreign country into the U.S., that's a completely separate department in the Treasury Department, and has nothing to do with the IRS. Reporting is only required if the amount transferred is more than $10K and if you did a wire transfer or ACH transfer, you can rest assured the U.S. bank receiving the funds has reported it to the Treasury Department.