topic I received a deposit for the sale of our house in 2024 but closing will be in 2025. Do i have to report deposit in 2024 taxes? or wait until close? in After you file

I received a deposit for the sale of our house in 2024 but closing will be in 2025. Do i have to report deposit in 2024 taxes? or wait until close?

RRamlall — Mon, 02 Dec 2024 15:44:02 GMT

Re: I received a deposit for the sale of our house in 2024 but closing will be in 2025. Do i have to report deposit in 2024 taxes? or wait until close?

xmasbaby0 — Mon, 02 Dec 2024 15:47:24 GMT

There is no place on a tax return to enter a deposit for the pending sale of your house.

SALE OF HOUSE

If your gain was more than $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return. Whether you re-invested the gain in to another house is irrelevant. If you have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

If you are using online TT, you need Premium software to report the 1099-S

NOTE: If you have ever used the home as rental property or claimed a home office, you have more information to enter

Re: I received a deposit for the sale of our house in 2024 but closing will be in 2025. Do i have to report deposit in 2024 taxes? or wait until close?

RRamlall — Mon, 02 Dec 2024 16:20:21 GMT

Thanks

Sale is a property overseas Guyana. Can I claim capital gains taxes paid in country even though no tax treaty?

Re: I received a deposit for the sale of our house in 2024 but closing will be in 2025. Do i have...

SusanY1 — Tue, 03 Dec 2024 15:08:32 GMT

Yes, you can claim taxes paid overseas without a treaty. The treaty isn't what allows for the foreign tax credit exclusively. Where treaties exist they modify the tax treatment of income in other ways governing which jurisdiction has the right to tax what, and sometimes limiting the tax rate.

You can safely claim the taxes on any foreign income on which taxes are owed in both the US and the foreign country taxing the income with very limited exceptions (such as income earned in Cuba or North Korea.)

You can find more information on how to do this HERE. While this article is mainly aimed at US taxpayers living abroad, you do not have to live abroad to take the foreign tax credit on income taxed by a foreign jurisdiction.