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

    Jan 12, 2013, 08:12 PM
    Us taxes on sale of foreign property
    If you are part owner (50%) of a property on the island of Jamaica and you not only never made a dime off the property, in fact you invested your personal wages over a period in trying to fix up the property and finally the property sells. You pay all taxes required by the JA gov't... a lot, including having to pay a caretaker who threatened to take you to court, and of course attorney fees, would you still have to pay taxes here in the US even though you never made any money off the property and you can prove that? Thanks so much

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    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jan 13, 2013, 12:09 AM
    You do not pay taxes on the GROSS proceeds of the sale. You pay taxes on the PROFIT (or capital gain) from the sale. The gain is calculated by subtracting the cost of the property and all the improvements you made. If there is NO profits, no taxes will be due, though you DO need to report the sale on your tax return.
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