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eRICKSON1
New Member

I sold land overseas with proceeds being taxed 12% value added tax and 6.5% capital gains tax. I plan to wire the funds here in full. Do I get taxed again here?

(wire from Philippines  to USA)
2 Replies
DaveF1006
Expert Alumni

I sold land overseas with proceeds being taxed 12% value added tax and 6.5% capital gains tax. I plan to wire the funds here in full. Do I get taxed again here?

 

The Philippines and US have a tax treaty that prevents you from being double taxed. You still need to report the sale of your land in the Philippines on your US tax return but you can claim the tax paid in the Philippines as a foreign tax credit on your US return.

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Carl
Level 15

I sold land overseas with proceeds being taxed 12% value added tax and 6.5% capital gains tax. I plan to wire the funds here in full. Do I get taxed again here?

Understand that you are required to report this sale on your U.S. tax return regardless of weather you wire the funds here or not. It just doesn't matter what you do with the proceeds from the sale. It's still a reportable transaction on your U.S. tax return.

 

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