Do I need to pay taxes in the US for a piece of land I sold in Argentina for $10,000 with my only record being a wire transfer to my US bank account? If so, how?

[andresravello]

I sold a piece of land. I got the payment in my US bank account and I don't have any paper trail. I was told I need to pay taxes but couldn't find a way to do in on Turbo Tax without having any type of forms (W-2, 1099-MISC, etc.)

[SundayInSalem · Accepted solution]

U.S. citizens and resident aliens are taxed on worldwide income, so the sale of land would be taxable to you unless you were a nonresident or were a nonresident at the time of sale.

I assume this is a personal sale and not the sale of business or investment property. Losses on personal sales are not deductible. If you sold at a loss, you do not have to report the sale.

If you sold land for a profit:

1. Type 1099b in Search
2. Select Jump to 1099b
3. Say Yes you sold stocks, mutual funds, bonds, or other investments
4. Choose Other for type of investment
5. Enter the name of the person who brokered the sale (or the buyer). Leave the EIN number blank
6. Select Land (personal use) as the type of investment and fill in the rest of the details

You’ll pay tax on the difference between the Proceeds and Total amount paid.

If you pay tax to Argentina on the sale you can claim a foreign tax credit or deduction.

Where do I enter the foreign tax credit (Form 1116) or deduction for 2020?

[andresravello]

Thanks so much. This was very helpful.