Contact UsI have a client that sold a home in Romania. she has dual citizenship, lives in US. sold in 2017 ,purchased in 1991 , no home exclusion is available . can not find exchange rates for basis-sales proceeds of aprox $40k in us currency . should this be reported on her 2017 amended return ?
not sure how to advise client, they have no idea what the house was bought for either
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Tax Professional Answers
Manasa Nadig
They have to disclose the long term cap gains on the property on their US tax return. They can have a local real estate appraiser help them with the value of the property in 1991. If this sale is taxable in Romania, then they have to make sure they comply with those rules. If they pay tax there, it can be claimed as an FTC on the US return. Also examine the Romania-US Tax Treaty and see what it says. If she is a dual citizen, does that add to to or help her with tax compliance burden, look into that. Also in 1991, was the property a gift or inheritance with a value = or > $100,000? Then did they file a F3520? If this is something you need help with or need to collaborate with us, please contact us at mnadig@mntaxbiz.com
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274 weeks ago