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Question: US Resident Sold Property in Foreign Country; tax / filing implcations?
A person sold a property in Chile, and at a loss. He is US resident on green card. He is thinking of transferring the proceeds from Chile into the US.
I like to know what are his filing requirements with the US government, and the tax implications of this. thanks
Answer: if you are a resident, then tax laws apply to you as if you were a citizen.
since you sold land and had a loss, you are allowed to claim that loss on your taxes. this may reduce the tax you owe for next year.
you will report your purchase price plus any monies you paid to secure the property. then you will report the sale price plus any fees you paid to make the sale. since you sold at a loss you will tranfer this loss to your 1040.
for something like this you really should see a tax pro.
also, you can bring all the proceeds to the US and not have to pay any tax on it because it is not “income”
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