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    veronicardz88's Avatar
    veronicardz88 Posts: 1, Reputation: 1
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    #1

    Mar 30, 2012, 08:45 AM
    Foreign property sale taxes
    My husband an I live in Texas, and we had a property (land) in Mexico that we sold last year (in 80,000 dlls), that we bought several years ago (I think we paid then about 50,000 dlls). We put that money on a down payment on a house we bought here in Tx (last year too), where we are currently living. We already paid taxes for that sale in Mexico. Do we have to pay taxes here too? And if we do, how much approximately?

    Thank you!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Mar 30, 2012, 09:19 AM
    You will report the sale of schedule D form 1040. You will also file Form 1116 to claim foreign tax credit.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Apr 2, 2012, 11:09 AM
    The $30,000 in capital gains will be taxed at most at 15%, and maybe at 5%, depending on your income level.
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