Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

Reply
vrl
Pioneer
Posts: 1
Registered: ‎07-18-2017

Selling my condo in Lisle IL

I am planning on selling my condo in Lisle IL. I don't live in USA. Moved back to India in 2012. Below is the statistics:
Statistics:
Location: Lisle, IL
Year of purchase: 2006
Purchase price: $232,500
Lived there till 2009
On rent since 2009
Selling price: $205,000
I filed for regular tax returns showing the rental income all this while, even after moving to India. Since I don't live in USA and don't have any other income besides the rental income and selling the property for $27,500 less than the purchase price, are there any tax implications?
Tax Pro
Posts: 5,431
Registered: ‎02-23-2016

Re: Selling my condo in Lisle IL

Hi vrl,

 

Welcome to the H&R Block community.

 

Simply put, if you sell the property at an overall loss, which is what it sounds like will happen, then there won't be any taxable income from this.  However, if you receive a Form 1099-S then the sale must still be reported.

 

Remember, your gain or loss is figured by:

 

SELLING PRICE - SELLING EXPENSES = REALIZED AMOUNT - ADJUSTED BASIS = TAXABLE GAIN OR YOUR LOSS

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Highlighted
Tax Pro
Posts: 5,431
Registered: ‎02-23-2016

Re: Selling my condo in Lisle IL

Also, remember that your rental income is your NET income after your rental expenses are deducted from everything the rental activity brought in, so you may not actually have taxable rental income but you must still file your Schedule E showing your revenue, expenses, and net income or loss from the rental.