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Where Taxpayers and Advisers Meet

Report USA Property Loss on Self Assessment

John1972
Posts:1
Joined:Sun Jan 20, 2019 11:35 am
Report USA Property Loss on Self Assessment

Postby John1972 » Sun Jan 20, 2019 11:55 am

I would be extremely grateful for some assistance in completing the capital gains / losses section of my Self Assessment HMRC return for the 17-18 Tax Year.

I purchased a house in Florida in 2007 for $260 000. A mortgage for $200 000 was taken out for the purchase.
In October 2017 the house was sold to the bank for $100 through a Foreclosure sale. (The bank kept the $100 proceeds as part of the sale agreement).

Can someone please help in identifying how I complete the Capital Gains / Losses section for this sale? Notwithstanding purchase and sale costs my paper loss is $260 000 however as the bank has forgiven the mortgage debt as part of the foreclosure process my actual loss is only $60 000. I am unsure on how to complete the for and worried that HMRC will see the $100 sale as suspicious. (I obviously have all the paperwork from the courts relative to the sale).

I also assume that I should convert the figures into GBP based on the exchange rates at the time of purchase and sale rather than todays exchange rate.
Thanks in advance for any assistance.

DavidTreitel
Posts:271
Joined:Thu Aug 16, 2012 4:31 pm

Re: Report USA Property Loss on Self Assessment

Postby DavidTreitel » Mon Jan 21, 2019 9:31 am

From a US perspective as you both sold real property and had forgiveness of debt income in 2017 you have an obligation to file a US income tax return for 2017. Has this been filed yet?


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