Level 4

Solved

Does Home Sale Capital Gain Exclusion apply for home in a foreign country?

Forum|Forum|6 years ago
December 7, 2019
8 replies
50 views

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?

ProSeries Basic

This topic has been closed for replies.

Best answer by itonewbie

Yes

Just-Lisa-Now-

Intuit Community Champion

Did he use the exclusion on the home in the US that was sold in 2017?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

abctax55

Level 15

HumanKind... Be Both

itonewbie

Level 15

I was thinking this wouldn't happen until at least 2 years after the sale of his US home.

---------------------------------------------------------------------------------Still an AllStar

abctax55

Level 15

HumanKind... Be Both

T

Turtle43Author

Level 4

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.

T

Turtle43Author

Level 4

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

Thanks for the update, @Turtle43. Glad to be of help.

---------------------------------------------------------------------------------Still an AllStar

itonewbieAnswer

Level 15

Yes

---------------------------------------------------------------------------------Still an AllStar

Sign up

Login with SSO

Let's get you signed in

Login with SSO