Client lives in Virginia. Bought a house in 2003 in Victoria Canada, and remodeled it, and used it as a vacation home. They never used the house as a primary residence and they never rented it out.
They sold the house in 2020 at a profit. How should this transaction be reported on their 2020 1040?
The CPA firm in Canada that handled the sale provided the original price of the property and associated expenses, and determined the adjusted cost basis basis of the house. Client filed a Canadian tax return and paid Canadian tax on the profit.
