Apartment was given to me by my ex, in exchange of me forfeiting other claims, out of court, more than 15 years ago. Since then I moved to US, and have become U.S citizen. It was not rented - extended family member was using this place. Now it is not needed, and I'm selling it. What should I expect from US taxes point of view? Thank you so much!

You will have to report the sale on Schedule D, and if the proceeds from the sale are more than your cost basis then you have a capital gain. The capital gains tax rate is 15% of the gain. If the proceeds are less than your cost basis you have a loss, but unfortunately you can't deduct a loss on the sale of private property.

The cost basis for the property is your origbnal purchase price (or your ex's purchase price, if he's the one who actually bought it), plus the costs of any capital improvements you may have made to the property over the years.

Everything ebaines says is true, but I believe it is possible for the capital gains tax to be ONLY 5% if your marginal tax bracket is 15% or lower.

Thank you for the answers! Apart from federal capital gain tax, are there any state taxes involved? I'm in New York. Thanks again!

Yes, because the states take the same attitude as the U.S. government. If you are a resident of the state, then ALL of your world-wide income is subject to state income taxes.

1. If you pay taxes in US you will claim foreign tax credit by filing form 1116.
2. I am not sure but may be your cost basis is the fair market value on the date you got the property plus cost of improvements during the years you owned it.
3. You must also be aware of forms TD F 90-22.1 (also known as FBAR) and Specified foreign financial assets (SFFA) Form 8938. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.in/2008/03/us-citizen-or-resident-with-foreign.html)