@mj0707 , appreciating my colleague @Anonymous_ ,excellent answer, just would like to reiterate a few points ( @Opus 17 had ) already mentioned :
(a) the limitation placed on US$ outflow is per Philippine treasury requirement -- has nothing to do with the US.
(b) Assuming that this house that you sold was your second home ( i.e. not income property ), the interest expenses ( mortgage interest ) may have been eligible for deduction if you were using itemized deduction. It is probably too late to get any tax benefits from this ( depending on actual facts and circumstances).
(c) If you have paid any taxes on the gain from the sale of the house per Philippines tax laws, this foreign tax may be eligible for foreign tax credit ( or deduction if you use itemized deduction). Noten that since the sale was transacted / completed during 2024, this gain / loss need to be recognized ONLY on your 2024 return ( filed in 2025 )..
(d) You have to compute the gain/loss under US tax laws for 2025 and it may be different from that under Philippines tax laws. Turbo Tax will do the work for you when you tell it that you have sold an asset -- form 8939 and Schedule-D.
(e) You mentioned you have had a bank account in Philippines. Note that this comes under FBAR ( form 114 at Fincen.gov -- only on-line filing ) and possibly FATCA ( form 8938 along with your return ) regulations. Hopefully you have followed these rules for the past years ( if you met the filing r thresholds ).
Is there more one of us can do for you -- now or in 2025 ?
