My wife and her 3 sisters sold a Colombia commercial rental property in April 2024. The FMV at the time of this inheritance is being determined. There will be a capital gain but see questions. Depreciation has never been taken. Questions:
1) Owing to exemption rules in Colombia, there will probably be no capital gain reported on the Colombia tax return.
2) Is the situation stated #1 irrelevant to the U.S. capital gain calculation?
3) Colombian return for year 2024 gets filed in August/September 2025. Is that irrelevant to the U.S. filing deadline for a 2024 sale? It's possible there could be foreign taxes paid in 2024 but the Colombian "1098"s won't get issued until August/September 2025. If there are foreign taxes paid in 2024, filed in Colombia in August/Sept 2025, would we just deduct those on U.S. 2025 return using 1116?
4) Does TT have a version that can handle the sale of a foreign rental property. Very uncomplicated when it comes to operating expenses. Almost none. The commercial tenant has always covered all. Other than real estate taxes, only minor expenses of moving rent from Colombia to U.S., such as transfer fees.
