topic Dollar Value changed in foreign home sold in Deductions & credits

Dollar Value changed in foreign home sold

deafmgecko — Mon, 16 Feb 2026 19:59:51 GMT

My wife just sold her house in Brazil. She strictly used it as rental property. She bought this house at R$100,000 (R$ is Real Brazilian currency) which is USD $44,152.06 in 2013. She sold it at R$150,000 which is USD 28,327.54 in 2025. You can see that she made R$50,000 in profit but when I do taxes as jointly, it showed loss in dollar for sold this house. The dollar value has changed significantly in 12 years. What should I do since it's a loss in Dollar but gain in Real (Brazilian)?

Another question is that she used as rental property in whole time, she never use it as main residence. Do I have to report it on Sale of Home?

Any advice is appreciated!

Re: Dollar Value changed in foreign home sold

MaryK4 — Mon, 16 Feb 2026 23:49:48 GMT

You can claim the loss even if it is due to the exchange rate. You are required to report income in U.S. Dollars using the exchange rate in effect when the transaction took place. See Foreign currency and currency exchange rates.

You would not report as Sale of Home, but as a sale of business property because it was a rental property.

Re: Dollar Value changed in foreign home sold

deafmgecko — Tue, 17 Feb 2026 13:31:16 GMT

Thanks, MaryK! So, I have to report both rental sold property and sale of business property?

Re: Dollar Value changed in foreign home sold

DaveF1006 — Tue, 17 Feb 2026 16:20:17 GMT

No. You would just report this as a rental-sold property. It is not necessary to report both places. To report.

Go to Federal > Wages & Income.
Section: Look for Rentals, Royalties, and Farm
click Start or Update next to Rental Properties and Royalties (Schedule E

As you navigate through the screens and enter informtion, there will be a section that will address the sale of your home.

Re: Dollar Value changed in foreign home sold

deafmgecko — Tue, 17 Feb 2026 16:33:20 GMT

Thank you!