workingtoolong
Level 2
12-07-2019
07:22 AM
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Taxpayer is US resident, sold vacation home in Puerto Rico
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itonewbie
Level 15
12-07-2019
07:22 AM
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The capital gain is sourced to Puerto Rico but also taxable in the US although a foreign tax credit will be allowed for the tax paid or accrued. My understanding is that 480.6c is only a withholding certificate; taxes were withheld on gross income but the actual nonresident liability is to be determine on the nonresident tax return based on gain realized.
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