Should I pay capital gain taxes for a home sale in a foreign country? I bought it in 2002 and lived there until I moved to the US in 2008. (I got my green card in 2016.)

[minki-kim7]

I bought a house in 2002 in a foreign country and lived there from 2003 to 2008 (5 years). I moved to the US in 2008 for my study with a student visa and I got a job in the US in 2010 (I got a working visa, H1B, then). I bought my primary home in the US in 2012. (The home in a foreign country became my 2nd home.) In 2016, I got my green card. I sold my 2nd home in a foreign country last year and got a capital gain. I think I need to pay the full tax for it and prepared the reporting accordingly, but, since I bought the 2nd home in a foreign country before I came to the US for the first time (as a non-US residence then), I don't know if there is an exclusion or deduction for the capital gain tax related to my transaction. Thank you in advance. 

[MarilynG · Accepted solution]

Unfortunately, there is no exclusion for capital gains on the sale of a second home that was purchased before you were a US citizen.

You may get a credit for any foreign taxes you paid on the sale, however. 

Here's detailed info:

https://ttlc.intuit.com/replies/6542867