dapperdobbs <GeorgeCFL[at]hotmail.com> wrote in news:0a71723d-032b-41aa-
8af2-36431dc91841[at]i29g2000prf.googlegroups.com:

- quote -

kept the euros for a while. Then every time I sold euros for US$, I had
a capital gain. I think you have to look at it a bit like shares of
stock. You inherit X shares then valued at $Y. If the dollar
appreciates 10$ vs the euro, you now have X shares at $Y*1.1. When you
sell, that is a 10% cap gain (reduced by exchange fees).


--
Best regards
Han
email address is invalid

Check the cost basis documentation at the time of the gift to see if
you can raise that to the legal maximum estimate, and you might also
look into the exchange rate of the Zloty / US$ at the time of the gift
(I'll leave it to someone else to take a stab at this, but if the
Zloty has appreciated since the gift, I wonder if you must pay tax
based on today's exchange rate, or if there is some loophole whereby
you can translate into dollars based on the date of gift exchange rate
- my guess is that any currency appreciation is also a long term
capital gain, and vice-versa for any currency depreciation, but you
might check to make sure). Even though the property was inherited (I'm
guessing) the basis is whatever the value was at the time of the
transfer of ownership, and you pay capital gains taxes on that - note
that if you sell this year, taxes will be due April 2008. If you sell
during 2008 taxes will be due April 2009.

On Dec 21, 2:13 pm, "Phil Marti" <prm20...[at]verizon.net> wrote:

- quote -

Thank you for your prompt response. Now I know what type of tax I will
have to pay, so I can do some more research online (mainly to see
whether I will have to pay 0% or 15%). Thanks.


- quote -

<kamilmarkowicz[at]gmail.com> wrote:

- quote -

Actually, you have to pay tax when you sell it. When you move the cash is
irrelevant.

- quote -

It's a long-term capital gain, reported on line 8 of Schedule D of the 1040.
It's not only the best way, it's the only way. Depending on your other
income, it will be taxed at either 5% or 15% (this year) or zero or 15%
(next year).

See IRS Publications 550 and 551.

--
Phil Marti
Clarksburg, MD

Hello,

I have some property in Poland (Central Europe) that was given to me
at an age of three. I would like to sell this property now, but I am
afraid that I will have to pay income tax once I transfer the money to
my US bank account (I am a permanent US resident).

Since I had the property for over 5 years, I am not required to pay
any sales (or income) tax in Poland. What is the best way to declare
the proceeds from the sale to IRS to avoid excessive taxation? The
total amounts will definitely stay under $50,000. Would this be
classified as an income or can I classify it as a gift from foreign
national?

I would greatly appreciate any answers,

Thanks.