Sold property in China in 2023. Title transfer witll take place in 2024.

In 2023 I sold an apartment in China.

Proceeds were deposited in my account.

However, as Chinese system has it, the title transfer did not take place yet and is expected later this year (2024).

Therefore, the property is still in my name.

If there is any problem with the title, or if the property is damaged after sale and before the title transfer, I'm still liable.

Question: do I report the sale on the 2023TT return of I must wait until after the title was transferred out of my name and into the new owner's name?

742

Expert Alumni

Jan 29, 2024 12:10:05 PM

Yes, report it on your 2023 tax return if you actually received the money for the sale, and if you have unrestricted access to the proceeds from the sale. If you should have damage, etc, before the final closing, you could amend the return to correct your cost basis for any additional costs to restore the property, only if insurance proceeds did not pay for those same damages.

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Sold property in China in 2023. Title transfer witll take place in 2024.