Foreign property sold on December 31st, but funds received in new year.

[GeorgeMathias]

Hi,

I sold a foreign property and changed ownership on 31st of December of 2024. However due to computer glitch, was not able to deposit the funds to the account until following day which was in the new year 2025. Agreement funds of 10% was received in the previous year and part of the taxes were paid to the government in the previous year 2024. Majority of the funds appeared in the bank in the new year 2025. Please let me know if we should file this transaction as part of filing in 2025 for the year 2024 or or file next year (2026) for the year 2025.

Thank You

George

[Vanessa A · Accepted solution]

If the ownership actually changed and the sale was finalized on December 31st, then you would include this as a sale for 2024.  This would be similar to putting a check in the mail on December 31st.  

If the change of ownership was NOT complete until after the funds were FULLY received, then you would wait until you file your 2025 return to report this as a sale in 2025.  

The actual date that ownership changed is the day you will consider the house sold.