Any Income/Capital Gains Tax on Sale of Land overseas?

[phantan]

What is the name of your state?
Massachusetts

I am a US citizen and resident in the US (Massachusetts) but I own land in the Caribbean (West Indies). What is the tax consequence (if any) of the sale of that land? Do I have to pay US income tax on the capital gains here in the US on the sale of that land?

Thanks for your help.

 

[abezon]

As a US citizen, you are taxed on your worldwide income. Your gains from the land sale are taxable. You can claim a foreign tax credit on any income taxes you pay to the West Indies. You may also be able to adjust your basis if you've made any capital improvements or have been capitalizing other expenses.

 

[phantan]

Thanks for your helpful response!