Yes, this would be reported as a sale of an investment. It does not matter that the property was overseas, it is still income he received and property he sold. (this is assuming he is a US citizen with US reporting requirements) To do this select the following:
- Federal
- Income
- Show More next to Investment Income
- Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
- Select Other
- Continue through and select Other again for the type of investment
- Answer how you obtained the items you sold
- You will need to enter the selling price, dates and the cost basis of the items
Depending on his other income and his filing status, he will end up paying anywhere from 0% to 20% capital gains tax on the sale.
The capital gains rates are as follows based on income
- Zero percent rate for the following income
- $44,625 for single or MFS
- $59,750 for HOH
- $89,250 for Married Filing Jointly
- Fifteen percent for income more than above but less than below
- $276,900 for MFS
- $492,300 for Single
- $523,050 for Head of Household
- $553,850 for Married Filing Jointly
- Twenty percent for the amount that your taxable income is over the 15% level.
Also, depending on whether or not the money he received went into a foreign account or came directly into a US account, he may also have foreign financial assets reporting requirements .
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
