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    Willow7888's Avatar
    Willow7888 Posts: 1, Reputation: 1
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    #1

    Aug 29, 2013, 12:10 PM
    Tax implications of selling a property in Costa Rica
    I have a property in Costa Rica that I may be selling soon and want to know about the tax implications of the sale. I will likely not be selling it for much more than I have into it but maybe will end up a $10- 20 K profit.

    Can I accept a US bank check from the seller who is also in the US and then deposit the funds into a CD or some other account? And what do I need to report to the IRS? The whole transaction or just any profits?

    Also, I have been advised to open an offshore account and keep this money outside the US.

    Thank you for your advice!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 29, 2013, 01:38 PM
    You will have to pay capital gains tax on the profit.

    The advice to put the money in an overseas account is bad because it smacks of tax evasion.
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