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

    Sep 8, 2009, 12:29 PM
    Taxes on sale of foreign inherited property
    I am a US citizen I inherited a property 30 yrs ago from my mother in Colombia. I have never rented it, lived in it for 18 yrs until my return to US in 2002. Will be selling it for US $135,000 . I will be buying a rental in the US with most of this . I own one property in Florida since 2004 where I live. Do I need to pay taxes to the IRS on this money ?
    Thanks,
    Carmen
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Sep 9, 2009, 01:23 AM

    Yes, you must report the sale on schedule D (Form 1040). Your cost basis is the fair market value of the property on the date you inherited it (30 years ago).
    If you paid taxes in Colombia on the sale of the property, then you will file Form 1116 to claim the foreign tax credit.
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