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Bruce R Leech
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bajajudy is right There are no pat answers to your question.
Bruce R Leech
Ensenada
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Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
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http://www.irs.gov/publications/p54/ch04.html#d0e2133
Topics - This chapter discusses:
Useful Items - You may want to see:
Who Qualifies for the Exclusions and the Deduction?
Requirements
Tax Home in Foreign Country
Bona Fide Residence Test
Physical Presence Test
Foreign Earned Income
Foreign Earned Income Exclusion
Limit on Excludable Amount
Choosing the Exclusion
Foreign Housing Exclusion and Deduction
Housing Amount
Foreign Housing Exclusion
Foreign Housing Deduction
Married Couples
Form 2555 and Form 2555-EZ
Form 2555-EZ
Form 2555
Illustrated Example
Bruce R Leech
Ensenada
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bajajudy
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I am certainly not an accountant. But wouldnt you deduct the cap gains paid from your outside income? Thereby reporting a negative income. Because
even if you make less than $80,000 you still have to report it, you just dont have to pay taxes on it.
Boy is this getting confusing.
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JG
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this web site may help ...did for me
http://www.mexperience.com/property/prop_buying.htm#Costs
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Bruce R Leech
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you need to pay capital gains taxes in both the US and Mexico. there is no deduction. why is this so confusing?
Bruce R Leech
Ensenada
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Bob and Susan
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"You can take either a credit or a deduction for income taxes paid to a foreign country or a U.S. possession."
"Taken as a deduction, foreign income taxes reduce your taxable income."
"Taken as a credit, foreign income taxes reduce your tax liability."
"regardless of whether you take a credit for foreign income taxes, you may be able to deduct other foreign taxes."
http://www.irs.gov/publications/p54/ch05.html#d0e5905
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Bruce R Leech
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| Quote: | Originally posted by Bob and Susan
"You can take either a credit or a deduction for income taxes paid to a foreign country or a U.S. possession."
"Taken as a deduction, foreign income taxes reduce your taxable income."
"Taken as a credit, foreign income taxes reduce your tax liability."
"regardless of whether you take a credit for foreign income taxes, you may be able to deduct other foreign taxes."
http://www.irs.gov/publications/p54/ch05.html#d0e5905 |
that is for income tax not capital gains tax
Bruce R Leech
Ensenada
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Bruce R Leech
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Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
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check this thread http://forums.bajanomad.com/viewthread.php?tid=15892
Bruce R Leech
Ensenada
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