Foreign property sold

[mhcpa1964]

Husband is from Trinidad and wife is from Canada. Both are long time resident aliens.

Husband sells Trinidad property in 2020 that he inherited in 1998 and there's a profit. Sales proceeds were deposited into a Trinidad bank account and still sit there now.

Trinidad won't release the funds due to hurdles beyond the taxpayer's control. Husband does not plan on filing a Trinidad income tax return.

So does the gain have to be recognized on his 2020 income tax return? I can see a case being made for the idea he hasn't fully realized a gain and that's the path I'd like to take.

Any comments and tips are appreciated especially knowing how busy everyone is.

[mhcpa1964]

I believe my hopes are dashed. Looks like he'll have to include the gains in this year's return regardless of the government's interference with his money.

[Dude]

hate to add to any misery but dont forget FBAR. https://www.irs.gov/businesses/small...-accounts-fbar

[TAXNJ]

I believe my hopes are dashed. Looks like he'll have to include the gains in this year's return regardless of the government's interference with his money.

Realize there is more involved that you may not be able to list. But what type of bank account and whose name on bank account? And are you saying the client never had access or a right to the funds to date?

[mhcpa1964]

Thank you all.

Dude - Yes I did the FBAR.

TaxNJ - the Trinidad bank account is in the husband's name. According to him, the Trinidad government is denying him access to transfer the funds off the island and into his US bank account. If he lived there he could freely use the money.

We decided to move forward with the Schedule D since the profit isn't that large and he's within the 0% cap gains rate. Hopefully this year he'll be able to send the money to the US.