Treatment Mortgage and Capital Gains on sale forei...
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Treatment Mortgage and Capital Gains on sale foreign property

I am potentially selling my apartment and I am wondering what the tax implications are.

The following numbers are for illustration purposes only, but I wonder if my reasoning is correct.

I bought the property in 2008 for EUR 100,000, which was worth USD 145,000 at the average 2008 EUR/USD exchange rate. I took out a mortgage at the time for EUR 80,000.

I now want to sell my property for EUR 150,000, which at current exchange rates is USD 165,000. I still have EUR 80,000 left on my mortgage.

Several questions:
Question 1:
Is it correct that I should calculate my capital gain in USD, so effectively USD 165,000 minus USD 145,000 = USD 20,000? As opposed to a capital gain of EUR 50,000 translated to USD now, which would be USD 55,000.

Question 2:
Does the mortgage have to be taken into account? i.e. I have an exchange rate gain on my mortgage, which is still EUR 80,000 but has decreased from USD 117,000 in 2008 to USD 89,000 now. Is that gain somehow off-setting the capital gain?

Question 3:
I know the depreciation of the property will need to be re-capped and is taxable at 25%. How do I figure out how much the allowable depreciation is in total on this property for the past 8 years?
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