How to report foreign land sale?

[pchuallen]

where do I report the gains from the sales of land in foreign country?

[Fern · Accepted solution]

As a US taxpayer, you worldwide income is subject to US taxes.  You will recognize a gain or loss on the sale of the property in the same way you would if the property was located in the United States.

In Turbo Tax, the sale will be entered in the Investment section (unless you are a real estate professional, then it would be entered on Schedule C).
• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start at  Stocks, Mutual Funds, Bonds, Other
• Respond Yes – you sold something
• Respond No – you did not receive a 1099B
• Choose Land as the asset sold

If you paid or accrued foreign taxes to a foreign country for this sale of land, you may be able to take either a credit or an itemized deduction for those taxes. Go through the Foreign Tax section in Deductions and Credits.
• Select Federal Taxes
• Select Deductions and Credits
• Select Show More at Estimates and Other Taxes Paid
• Select Start next to Foreign Taxes

[Muru1]

I sold a property in India that i bought few years ago and it was not my primary resdience. How do I report that under captial gain (Stocks)

What should i choose under the "Type of Investment sold"?

Where can i report the income tax that i already paid in India for this?

In India, there is only Federal Tax and there is no state tax. 

Thanks,

Muru

[Eva Dunne]

Hello, is this the same action taken if foreign property was your principal place of residence and you have recently become a US resident for tax purposes?

[ToddL99]

If you sold your principal residence after becoming a US resident, enter the sale in the  "Sale of Home interview of Personal Income > Less Common Income.  

Second homes and land are entered as "investments" (as described by @Fern ).

Publication 523 (2019), Selling Your Home lists the rules for excluding the gain on the sale of your principal residence.  Foreign properties are not excluded from this tax break.

[ra0010]

Hi there! If I sold my foreign property at a loss, do I still need to report it in my tax return? 

[kurmakote]

  property was sold in year 2023 now it does not allow me to enter 2023 what do I do?

Thanks

[DaveF1006]

You need to amend your 2023 return to report the sale.

[kurmakote]

I filed taxes in India in 2024 and paid taxes so do I still need to file the sale of the inherited property?

And i am trying to file it this year to report the sale and take tax advantage.

Is that ok or do I need to to file amendment for 2023?

Thanks

[DaveF1006]

Yes, if the sale happened in 2023, you will need to report and amend it on a 2023 tax return.

[kurmakote]

The problem is I had to update my mac mini to down load this year turbotax.  Now I am trying to open 2023 turbotax and that I used it last year it will copy to 2024 turbotax what do I do?

Should I go ahead and use it or do I use  paper file?

Thanks

[MarilynG1]

Do you still have the 2023 program to use to amend your return?  If not, if you downloaded it, you can Sign In and download it again to Amend.  Most likely, you'll need to mail your amended return.  

Once you finish your amendment, save that file and transfer it to start 2024. 

@kurmakote 

[kurmakote]

Yesterday one of my friends called me and that she was in trouble because she forgot to take RMD from one of two accounts.  

Is their way to reduce the penalty of 25% ?  can family health crisis help alleviate the problems she is facing?

THanks

[MarilynG1]

Neither the IRS nor TurboTax knows what your RMD should be.  They expect you and/or your plan administrator to make sure that the RMD is taken each year.  If she needed to take RMD in 2024, and received a distribution from that account, she should check with her plan.  The distribution she received may have actually included RMD (since this isn't noted specifically on the 1099-R).

Also, if she knows what her RMD for the year should be, and she had another distribution that was over that amount, she can indicate that her total RMD was taken from that account.

The IRS allows you to satisfy your RMD requirement by taking it from one account, or across several accounts.  As long as the total is taken during the year.

Here's more info on IRS Requirements for RMD's.

@kurmakote