How to report sale of a foreign real estate property (at a loss due to currency rates)?

[yatishb]

Hello,

We bought a property in India in 2013 for about $70K USD. The property was not rented and was used as a second home whenever we would visit India for extended period of time. We paid property taxes and maintenance as expected.

We sold this property in 2023. Due to the inflation index in India and the actual sale price, the government issued a loss on long term capital investment and there were no capital gais taxes paid in India.

After all the expenses (sale expenses, CA/CPA cost and the prevailing high USD to INR rates), the actual amount when we brought the money back to the US was 78,000.00 (profit of $8,000 USD over the initial investment of $70,000 USD). 

How do I enter this sale in Turbo Tax?

Thank you in advance for your help!

[MarilynG1 · Accepted solution]

Here's How to Enter the Sale of a Second Home:

1. Open your return.
2. In the search box, search for sold second home and select the Jump to link at the top of the search results.
3. Answer Yes on the Did you sell any investments in 2023? screen.
   • If you land on the Your investment sales summary screen, select Add More Sales.
4. On the Did you get a 1099-B or a brokerage statement for these sales? screen, select No.
5. On the Tell us about this sale screen, select I’ll enter one sale at a time, and enter Second home (do this also for inherited homes) or Land in the Description box.
6. Enter the remaining info for your sale and continue through the screens until you reach Here’s all the investment accounts we have so far.
   • If you have more sales to add, select Add more sales.