Greetings. I appreciate advice on the following:
- Sold commercial property in Portugal in June 2024
- Portuguese 2024 tax window is between April 1 and end of June 2025
- A Portuguese accountant has calculated what I owe from this sale (26% of capital gains) and informed me that these only need to be paid by December 2026. Government allows for 30 months to find another investment and use it toward lowering capital gains on my June 2024 sale
- Over the past month the US dollar has taken a serious hit vis a vis the Euro, and ideally I would wait before paying my Portuguese taxes owed. Note, I understand there is no guarantee that the dollar will strengthen in the short term, but I would like to benefit from the Portuguese government's extension
I am not sure of the options available to me in terms of filing my US taxes. For instance, if I pay capital gains taxes in Portugal later in 2025 and only file taxes in Portugal in April 2026, insofar as my US taxes:
- Do I still need to include the sale in my 2024 taxes (i.e., this tax season)? And if so, how do I handle that although I know how much I owe (i.e., 26%), I have not yet paid it to the Portuguese government? Or
- Do I file my 2024 taxes normally (i.e., don't report the sale of foreign property) but include it in my 2025 tax filing (i.e., filed next year)? Or
- Something different?
Thank you for your help.
PS: calling out to @DaveF1006 who has given great assistance in the past! Thank you.
