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    justin_tyme1's Avatar
    justin_tyme1 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 8, 2012, 11:01 AM
    US taxes on brazlian property sold
    I'm selling my farm and residence in Brazil. The appreciation in value is over 100 Thousand dollars. Brazilian law
    Requires me to pay 15 percent in capital gains. Since I have to pay capital gains in Brazil will I have any tax
    Liabilities in the US?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 8, 2012, 07:55 PM
    If you are a US citizen or resident, you need to report this sale on schedule D (Form 1040). You will also file Form 1116 to claim credit for taxes paid in Brazil. http://taxipay.blogspot.com/2008/03/...h-foreign.html

    If your residence is your main home, you can exclude the gain. http://taxipay.blogspot.con/2008/03/...your-home.html
    justin_tyme1's Avatar
    justin_tyme1 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Feb 9, 2012, 07:14 AM
    Thanks for the reply. It seems the US doesn't have a tax treaty with Brazil so I don't think I can deduct the taxes I pay here. It's an imminent domain thing though so I still don't know.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 13, 2012, 02:47 PM
    Claiming the Foreign Tax Credit is NOT dependent on having a tax treaty with the other country. What matters is whether you paid taxes on income which is subject to U.S. taxation.

    You need to file Forms 1040 with Form 1116 and Schedule D.

    If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.
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