Online House Hunting

What U.S. taxes am I expected to pay on a house sale in the Philippines?

I just sold my family property in the Philippines that we've owned for the last 30+ years. I am a U.S. citizen and have not lived in the Philippines for over 30 years. What can I expect to be taxed for the capital gains?

Public Comments

1. I wouldn't say crap to the IRS.
2. Ignore the first answerer. The IRS will more than likely find out about the sale. You can expect to pay capital gains taxes on the sale of the property if you sell it at a gain. You need to have how much your family paid for the property in the first place, plus any costs involved in buying it, plus any improvements you put into it, plus the costs involved in selling it. If all these added together are less than the sale price then you have capital gain. Since you've owned the property for 30+ years your gain would be long-term, subject to maximum tax rate of 15% (5% if you are in the 10% or 15% brackets). State income tax for capital gains would depend on what state you lived in. It's also possible that you might have to pay Philippines taxes on the sale of the property, if so you can get a credit from the IRS for the taxes paid to the philippines, but it might not be a 100% credit for the philippines taxes.