I am US citizen for 20 yrs and am selling my own home in Czech Republic that I own more than 5 yrs (after parents). What are US tax consequences? I will pay tax to Czech Rep. (5%) from sale and I hear there is a law between CZ and US preventing double taxation?
Also, how do you report this for IRS?
Thanks,
Pavel

This is from the website of Istitute of Chartered Accountants in the UK:

Double Taxation Treaties are conventions between two countries that aim to eliminate the double taxation of income or gains arising in one territory and paid to residents of another territory. They work by dividing the tax rights each country claims by its domestic laws over the same income and gains. Over 1,300 Double Taxation Conventions exist world-wide. The UK has one of the largest networks with more than 100.

And it exists not only between US and CZ, but between many other countries.

Aside from your bank being notifed of where a large amount of money is coming from, you will probably have to pay Capital Gains tax, but only if it exceeds a certain amount and this explained on this website:www.irs.gov/newsroom/article/0,,id=170634,00.html

Tick