Do Us Citizens Pay Tax on Foreign Property?

What should you know about Do Us Citizens Pay Tax on Foreign Property? Read our comprehensive breakdown in this feature article.

Second, if the proceeds from the sale of the foreign property are reinvested in a “like-kind” foreign property for U.S. tax purposes, the U.S. citizen may be able to currently avoid U.S. taxation from the property sale based on the “like-kind exchange” rules.

What are the tax implications of selling property abroad?

There are important tax implications when a U.S. citizen sells a property abroad. U.S. citizens are taxable in the United States on worldwide income. Thus, a U.S. citizen will be assessed U.S. income tax liability on the sale of real estate in a foreign country, even though the transaction took place outside the United States.