@abhishtu2 , generally agreeing with your post. I just want to make sure that " in dollar terms" is not the whole story. Yes for US Tax purposes you use the US dollar of the day ( i.e. published exchange rates effective on the day) od the transaction. However there are also rules for gain computation and what expenses are allowed to be included as offset ---that is why I used the term under US laws. Also the acquisition cost reckoning may be different whether you directly bought or acquired through gift or inheritance per the US laws. Then of course there is the basis adjustment based on laws of each country and/or facts and circumstances ( including how used / depreciation allowable / step-up etc. )
Further if the prop. was qualified as Long-Term ( per US laws ), the tax treatment would be capital gain tax rather than ordinary gain for both Federal and State taxes.
However, TurboTax would do all these things for you -- all you have to do is answer the questions posed.
Hope this heps.
pk
