# capital gains tax



## berniej (Mar 5, 2012)

asking this for my daughter.She sold her house here in the Netherlands, and bought another one in the Netherlands putting the money she got on the first house into the new house.Would she have to do anything with that or is it if you don't buy another house.
any help is appreciated as I have no clue.

Thanks In advance

Bernie McKenna


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## Bevdeforges (Nov 16, 2007)

For US tax purposes, the first $250,000 of gain on the sale of a personal residence is tax free. IRS Publication 523 gives you all the details - but if the gain is below the limit, it doesn't need to be reported at all, I think.




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Publication 523 (2021), Selling Your Home | Internal Revenue Service







www.irs.gov


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## berniej (Mar 5, 2012)

Bevdeforges said:


> For US tax purposes, the first $250,000 of gain on the sale of a personal residence is tax free. IRS Publication 523 gives you all the details - but if the gain is below the limit, it doesn't need to be reported at all, I think.
> 
> 
> 
> ...


thanks for the info I thought thats how it went but her question caught me off guard.

Thanks 

Bernie McKenna


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## Moulard (Feb 3, 2017)

Couple of things... 

Remember that with the USD as functional currency, to figure out the capital gain she needs to convert the purchase price at the spot rate on the date of purchase and convert the sale price at the sport rate on the day of sale to calculate the capital gain in USD.

Bear in mind is that if the gain is above $250,000 USD then she would be able to offset any US tax on the gain by any Netherlands taxes on the gain using Form 1116.

The other item she may need to be concerned about is phantom currency gains . While small gains are not treated as taxable income, when one uses part of the proceeds of the sale of the house to pay off the mortgage, can result is sizeable gains.


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## berniej (Mar 5, 2012)

Moulard said:


> Couple of things...
> 
> Remember that with the USD as functional currency, to figure out the capital gain she needs to convert the purchase price at the spot rate on the date of purchase and convert the sale price at the sport rate on the day of sale to calculate the capital gain in USD.
> 
> ...


all she did wa take what she got for the old house and used to buy her new house.She still had to get a mortgage for her new house. does that help.

thanks for the reply

Bernie


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## Nononymous (Jul 12, 2011)

If the capital gain does not exceed the $250k then I don't believe any of that particularly matters. 

If it does and is taxable, consider not reporting the gain or ceasing to file if she's a dual citizen.


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## berniej (Mar 5, 2012)

w


Nononymous said:


> If the capital gain does not exceed the $250k then I don't believe any of that particularly matters.
> 
> If it does and is taxable, consider not reporting the gain or ceasing to file if she's a dual citizen.


well found out its for next year so I can read the pamphlet plus I don't think she has to but will check.Thanks for the advice.

Bernie


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