Re: Would a capital loss from a foreign asset go on SCH D?

Alva124 · ‎08-26-2021

I have a client that has an investment property in another country and incurred on a loss when selling it.

Would this be reported on SCH D?

Could he use the loss to offset domestic capital gains? Would the OFL (overall foreign loss) apply in this case?

sjrcpa · ‎08-26-2021

It would go on Sch D - or 4797. Same way you would treat the sale if it was a US asset.

In what context are you concerned about overall foreign loss.

The more I know the more I don’t know.

Alva124 · ‎08-26-2021

I am concerned that foreign capital losses may only be used towards foreign capital gains

sjrcpa · ‎08-26-2021

Is your client a corporation?

I'm not familiar with this rule so I'll let someone smarter than me jump in.

The more I know the more I don’t know.