Submitted By: someone
Answered: April 19, 2023 4:42 am

I’m a U.S. citizen. I sold property in Jamaica that I’d owned for years. What are the tax implications of this sale?

U.S. citizens are taxed on their worldwide income. They must figure gain or loss on the sale of foreign real property. If the foreign property is a residence, the home sale exclusion may apply. Note: If foreign taxes are paid on the sale, this may trigger a deduction or credit for those taxes.

advertisement
Tax Glossary

Amount realized

A statutory term used to figure your profit or loss on a sale or exchange. Generally, it is sales proceeds plus mortgages assumed or taken subject to, less transaction expenses, such as commissions and legal costs.

More terms