Capital gains on my foreign property?
One of the most frequent questions we are asked, is “will I pay capital gains tax in the US, if I sell my New Zealand/Australian based property?”.
Unfortunately, the answer to this one is…maybe.
Capital gain in a simplified format is: selling price – (purchase price + improvements and selling costs) = capital gain.
Whilst there currently is no capital gains tax on the sale of property in New Zealand, and limited capital gains tax in Australia, the US does tax most capital gains (including the sale of a home).
The question which we would first ask, is whether this is the sale of your home, or a rental/investment property?