Sheltering Capital Gains from Greece

QUESTION:

I will soon receive $80,000 USD for a piece of inherited property in Greece
that I've sold to a family member living in Greece. What are the tax
consequences to me, a US citizen living in Arizona? Is there any way to
minimize taxes by having the proceeds sent as gifts to me, my spouse and
son? What about overseas accounts?

If I wanted to use the entire proceeds to invest in a condo in Vancouver, is
there any means to accomplishing an exchange?

Thanks for your advice!


david ingram replies:

If the Greece property was worth the $80,000 USD when you inherited it,
there is no US tax liability at all.

If you want to send it to Vancouver to buy a condo here, go ahead.

AND, if the property was worth $85,000 USD when you inherited and was only
worth $80,000 USD when you actually sold it, you have a $5,000 capital LOSS
to put on schedule D of your 1040.

OR, if the property was worth $70,000 USD when you inherited it, and you are
now getting $80,000, you would have a $10,000 capital gain to report on
Schedule D of your 1040.

No 1031 exchanges are possible when the properties are in two different
countries.