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Tax implications for selling my two houses abroad

Posted: Thu Jun 10, 2021 1:51 pm
by Pitagoras
Hi all, I moved to the US almost 6 years ago (I was transferred by a company), and looking how things are in my home country, and kids growing up here, we most certainly will not go back. We left two homes there, which I was reluctant to sell at that time, but now I am convinced that is the way to go.

I am wondering how that will impact my taxes here in the US. There are no double tax agreements with my home country. It has high inflation rates, so all real estate deals are done in US Dollars. The taxable transaction is done in local currency, although in the deed the dollar amount is documented. But since the formal price is in local currency, and inflation is so high, a property literally cost 50-100 times more now in LC since I bought it. Of course converted to dollars it stays kind of constant.

so two questions come in mind:

1) How does that work when I make my yearly taxes? I do not live there so it is not considered as main property
2) How do I manage to bring over about 400k ? How do I declare that in order to avoid any red flag in the IRS?

Open to any suggestion, including "go and get a CPA"

Thanks!