Selling a property outside USA (bought before coming to USA)

[Alt2022]

I am not US citizen but a green card holder. I had an apartment outside USA which I lived at years before coming to USA. Now I sold this flat and the buyer transferred that amount to my new USA bank account here. Shall I pay tax on that ? 

[DavidT0202]

Hi @Alt2022 

US citizens and Green card holders are required to report and pay taxes on their worldwide income. This includes the sales of property, both foreign and domestic. This tax on foreign property holds true even if the sale is not reported to the US

You will need to report the sale (converted into US dollars) on your tax return as the sale of a capital asset. To know the actual amount of the capital gain or loss on this sale, you will need to know not only your sale's proceeds (in USD) but also your basis (in USD). Your basis is usually the purchase price plus any capital improvements made to the property (all in USD).

The Internal Revenue Service has no official exchange rate. In general, use the exchange rate prevailing (i.e., the spot rate) when you receive the property, made any capital improvements and sold the property. Please refer to the following IRS links for more information about Foreign Currency and Currency Exchange Rates and Yearly Average Currency Exchange Rates

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