Sold property overseas. Did exchange & purchased property overseas with portion of proceeds per tax law of foreign country and paid no capital gains tax on the exchange . There will be no capital gains tax to be paid in the USA on the exchange portion. Right? I am a US resident.

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Originally Posted by Kookiegn

There will be no capital gains tax to be paid in the USA on the exchange portion. Right?

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Assuming that this property has not been your principle residence... sorry, but you will have to report the sale on Schedule D and pay tax on any capital gain realized.