In 2018 sold a studio in Argentina for $45,000. which I purchased in 2012 for $45,437.00. I paid all taxes due to this sale in Argentina. How do I declare this?

[ongmytax]

I purchased the studio while in construction, from 2010 to 2012.

[HelenaC · Accepted solution]

f you are a US citizen or resident, you are required to file a US tax return for income from all sources both domestic and foreign. Therefore, you will need to report the 2018 sale of this condo (converted into US dollars) on your tax return as the sale of a capital asset. 

See Where do I enter the sale of a second home, an inherited home, or land?

If you paid foreign taxes on the this transaction, you will be allowed an offset for these foreign taxes on your US tax return.  

• If you take a foreign tax credit, your US tax liability will be reduced by the amount of taxes that you would have paid if the transaction took place in the US (see this link Claim Foreign Tax Credit). 
• If you take a foreign tax deduction on Schedule A, you will be allowed to deduct the full amount of the foreign taxes paid but you will need to itemize (which could limit your ability to take the full deduction). 
• The TurboTax software will help you determine which of these options will lower your overall tax liability.
• See Where do I enter the foreign tax credit (Form 1116) or deduction?