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nad5560
New Member

If I am a us citizen, who owns a piece of Property abroad, is that piece of property subject to capital gains tax if I sell it and transfer the funds to USA?

I am a US citizen. My father owned a house in Pakistan which he transferred into my name about three years prior to his death. I sold the house approximately 5 and 1/2 years ago and reinvested the proceeds into a residential plot in Pakistan. Now I want to sell that piece of property and have the funds wired into my US bank account from my Pakistani bank account. what are the tax implications if any?

1 Reply
CarolynM
Level 1

If I am a us citizen, who owns a piece of Property abroad, is that piece of property subject to capital gains tax if I sell it and transfer the funds to USA?

Yes, as a US responsible, you are responsible for paying taxes on all your income earned world wide. 

You will need to convert the income to US dollars to report on your 2018 tax return, if you sell this year.

For more information about capital gains, follow this link: IRS on Capital Gains

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