Turtle43
Level 3
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
TP is a US Citizen who moved to China for work a few years ago. His Main Home is in China. He used to own a home in the US which had been sold 2017 or earlier.
Tax Planning Question: If he lived in the China Home for at least 2 out of 5 years, can he sell and benefit from Home Sale Capital Gain Exclusion with a Main Home that is outside of the US?
Solved! Go to Solution.
Labels
Just-Lisa-Now-
Level 15
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Did he use the exclusion on the home in the US that was sold in 2017?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
abctax55
Level 15
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
:+1:
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
( Generic Comment )"
itonewbie
Level 15
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I was thinking this wouldn't happen until at least 2 years after the sale of his US home.
---------------------------------------------------------------------------------
Still an AllStar
Still an AllStar
abctax55
Level 15
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
:clap:
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
( Generic Comment )"
Turtle43
Level 3
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
This is a tax planning question on if he would be able to take a Cap Gain Exclusion based on current tax law if he were to sell his Primary Home in China in the future if he lived in it >2 years (24 months) out of at least 5 years that he owns the China home.
I am aware that he could not take the Capital Gain Exclusion in 2018 if he just took the Cap Gain Exclusion on Primary Home in 2017 tax return. I am requesting his 2017 and 2016 tax returns since he is a new client to me. He files 1040 with Foreign Income Exclusion. Thank you for your input.
I am aware that he could not take the Capital Gain Exclusion in 2018 if he just took the Cap Gain Exclusion on Primary Home in 2017 tax return. I am requesting his 2017 and 2016 tax returns since he is a new client to me. He files 1040 with Foreign Income Exclusion. Thank you for your input.
Turtle43
Level 3
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
TP was not able to take advantage of the Cap Gain Exclusion because he moved to China for work more than 5 years before he sold his US Home. I think the answer is YES, in the future when he sells his Main Home in China and lived there 2 out of 5 years and did not take the same exclusion 2 years before the sale, he can qualify for the Cap Gain Exclusion even the home was in a foreign country. Thank you!
itonewbie
Level 15
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thanks for the update, @Turtle43. Glad to be of help.
---------------------------------------------------------------------------------
Still an AllStar
Still an AllStar
itonewbie
Level 15
12-06-2019
06:07 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes
---------------------------------------------------------------------------------
Still an AllStar
Still an AllStar