Dollar Value changed in foreign home sold

[deafmgecko]

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!

[MaryK4 · Accepted solution]

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.  

[deafmgecko]

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

[DaveF1006 · Accepted solution]

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

1. Go to Federal > Wages & Income.
2. Section: Look for Rentals, Royalties, and Farm
3. 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.

[deafmgecko]

Thank you!