Real Estate

I had a visa for 2012. Purchased an apartment overseas in 2007 befor I cam to the US. I came to the US in 2009. I rented out the apartment overseas as rental property. I recently sold it. does my cost basis start in 2009 or 2009 when I came to the US?

Answer :

I guess you are a US resident either under the INS rule( i.e, permanent resident, a green card holder) or the IRS rule ( as a US resident for tax purposes), then your cost basis starts from the year of 2009 when you came the a US resident , NOT 2007 before becoming a US resident.

Your cost basis starts from the year of 2009 when you became a US resident , NOT 2007 before becoming a US resident. Guess; 2009 cost basis can be larger than (or equal to) 2007 cast basis You may contact an Intl tax report at the IRS for more info in detail.

Source : http://www.asktaxguru.com/8241-real-estate.html