please help with foreign exchange tax

carmus · #1 (**permalink**) 7th August 2012, 03:13 AM

Hi..we have been living in the us for 2 years and have decided to go green card, we are selling our property in the uk that we have rented out since we got here, what taxes will we have to pay in the us from the sale of the house...i'm told that we will have to pay tax based on the excahnge rate when we bought the house and when we sell the house. Also will we be able to claim back any of the costs of selling the uk house on our us tax returns.....

Bevdeforges · #2 (**permalink**) 7th August 2012, 06:47 AM

If you can justify the property as being your primary residence during at least 2 of the last 5 years, you may be able to qualify for the exclusion of all or part of the gain on the sale. Take a look here Tax Topics - Topic 701 Sale of Your Home for guidance, and check the publications referenced on the site for details.
Cheers,
Bev