Sale of Land

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Subject Author Date Sale of Land Tiziano 08-16-2009  Re: Sale of Land Seth 08-18-2009
Posted by Tiziano on August 16, 2009, 8:51 pm Please log in for more thread options I live and pay taxes in the U.S. and I have a small piece of land in Europe that I will be selling soon. How will I report this sale on my 2009 U.S. income tax return? How do I deal with the fact that I file my income tax returns in U.S. dollars but the sale of the land will be done in a foreign currency? I don't know much about tax laws, so please try to be as specific as possible. Thanks. -- tb -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Seth on August 18, 2009, 12:45 am Please log in for more thread options >I live and pay taxes in the U.S. and I have a small piece of land in >Europe that I will be selling soon. > >How will I report this sale on my 2009 U.S. income tax return? If a profit, capital gains (schedule D). If a loss, and you held it for personal use, ignore it. If you held it for investment, again schedule D. > How do I >deal with the fact that I file my income tax returns in U.S. dollars but >the sale of the land will be done in a foreign currency? If you convert the proceeds to US dollars, use that as the sale amount. Otherwise, use the exchange rate on the day of sale. (If you convert the currency later, you might have a taxable gain on the currency.) Seth -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Capital gain on land sale (proceeds used to buy vacation home) March 25, 2007, 11:47 am A cry for help from the Land Down Under September 8, 2009, 9:37 am Land Subdivision March 30, 2007, 4:15 am Land Encumbrance February 5, 2008, 9:28 am Re: Sold land July 1, 2006, 4:36 pm Re: Sold land July 1, 2006, 4:36 pm Re: Sold land July 1, 2006, 4:36 pm Re: Sold land July 1, 2006, 4:37 pm Re: Sold land July 1, 2006, 4:56 pm Is there a land trust for minors ? July 12, 2007, 7:34 pm