Hello,
I am a US citizen. I sold a home in India (a second home) and bought another smaller home in India with some of the proceeds. I already filed a tax return with the Indian government and paid the long-term capital gain tax and got the refund. How do I report such a transaction in TurboTax?
Let us say the following are the simplified amounts.
Sale amount for the original home = $250,000
Cost Basis for the original home = $100,000
Capital Gain = $250,000 - $100,000 = $150,000
Purchase Price for the new home = $125,000
Amount for which I am liable for capital gain tax in India = Capital Gain - Purchase Price for the new home =
$150,000 - $125,000 = $25,000
Capital Gain Tax (20%) Paid in India = $25,000 * (20/100) = $5,000
Thank You.
