1031 Boundaries with Foreign Properties

1031 foreign property

Many people are subject to US capital gains taxes on the sale of their foreign property. These folks may be surprised to discover that the US government collects taxes on income from many sources. This is true, even if the income is derived from the sale of foreign property. United States taxpayers (including non-citizen US residents) are required to report their earned income and file tax returns no matter where they derive their income.

1031 Exchange Stops at the Border

An investor seeking to exchange into the United States, may be more surprised to learn that in order to qualify for tax deferral under Section 1031, the exchange must be of “like-kind property”; and, that in 1031(h), Congress wrote the law so that “property located in the United States and property located outside the United States is NOT considered to be “like kind.”

  • 1031 Hotline: If you have questions about 1031 boundaries with foreign properties, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2016 Jeffrey R. Peterson – All Rights Reserved