Sold House out of country

Cindy
Cindy Member Posts: 1 Newcomer
in Live Q/A Event

I sold a house in Mexico this year to an American buyer. All of the financial transactions were made in the U.S. with American money. I sold for 143k. I bought the house 14 years ago for 120k. I also paid 6k to the Ejido when I bought the house on top of the 120k. I borrowed the money with a note for 120k from my Mom. I paid the note off after the sale.
Do I owe U.S. taxes on this? If so, on what part of it?

Thank you so much for your help!

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Answers

  • KristineS
    KristineS FreeTaxUSA Agent Posts: 177

    Hi Cindy,

    Thanks for joining our Live Event today!

    You may or may not have capital gains tax to pay on the sale of the house depending on if it was your primary residence and/or if you rented it out at any time.

    Please look over these Eligibility Rules in Publication 523 to determine if there is gain to exclude or report.

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