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question about overseas property sold for a loss

I had a property overseas that I acquired back in 2012 prior to coming into the U.S., the apartment was fully funded by my parents and grandparents who are all non-U.S. citizens. 

I moved to the U.S. in 2015 prior to the delivery date. The apartment was never used, remained vacant and I did not receive any income for it, hence, never reported it in my tax returns because it was acquired prior to me being a U.S. person and second because it never generated any income for me. In 2023, I sold this apartment for $71,000 loss due to local market changes. 
My questions:

1- Does moving the remaining money from the sale (a little bit over $100k) from overseas to the U.S. require tax reporting since it was a gift from my parents/grandparents who fully paid for this apartment and it was acquired prior to my move to the U.S.? 
2- I have both the acquisition and sale certificates/contracts to prove the $71k loss, can i use this loss to offset any capital gain taxes in 2023 tax return? or I cannot claim the loss because the apartment was purchased using gifted money?
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1 Reply

question about overseas property sold for a loss

I'm not certain about repatriating the funds (or bringing them here in the first place), but it's your money (the proceeds from the sale) so there should be no impact.


With respect to your loss, if the property was never held for investment or rental purposes (i.e., held for personal use), then the (capital) loss is from the sale of personal-use property and cannot be used to offset capital gains.

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