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Author: mrgreeny Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121564  
Subject: hard one Date: 2/2/2000 11:33 PM
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This is a hard one:

I bought a house in Australia in 1991 for $84K.
I sold it last year for (after commission etc) $72.5K giving me a large capital lost.

In reporting my tax should I convert those amounts to US dollars for the year involved? ie The Australian dollar was much higher in 1991 than it is now making my capital loss even greater.

Also can anyone point me to a dollar conversion table for 1991?

I don't read this board much so if you can email me at
suzanne.green@juno.com
it would be much appreciated.

TIA!
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27069 of 121564
Subject: Re: hard one Date: 2/3/2000 6:59 PM
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<<This is a hard one:>>

Why do people give me "set up" lines that I can't respond to in public???

<<I bought a house in Australia in 1991 for $84K.
I sold it last year for (after commission etc) $72.5K giving me a large capital lost.>>

Right...assuming that you are a US citizen, that the house was either an investment property or rental property and not a personal use property...along with a few other assumptions.

<<In reporting my tax should I convert those amounts to US dollars for the year involved?>>

Yes...both for the purchase and sale...using the appropriate conversion rates at the time of purchase and sale. Reporting Australian $ on your US tax return doesn't work.

<< ie The Australian dollar was much higher in 1991 than it is now making my capital loss even greater.>>

That's quite possible.

<<Also can anyone point me to a dollar conversion table for 1991?>>

Sorry...I don't know of one. But a quick Yahoo search will likely help you out.

<<I don't read this board much so if you can email me at
suzanne.green@juno.com
it would be much appreciated.>>

Sure...stop by...leave one question...use us and abuse us...and then just leave. I'm crushed.

TMF Taxes
Roy



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Author: mrgreeny Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27393 of 121564
Subject: Re: hard one Date: 2/5/2000 9:11 PM
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I wrote:

<<I bought a house in Australia in 1991 for $84K.
I sold it last year for (after commission etc) $72.5K giving me a large capital lost.>>

Roy "the amazing and amusing tax expert wrote":

<<Right...assuming that you are a US citizen, that the house was either an investment property or rental property and not a personal use property...along with a few other assumptions.>>

I write anew with my assumptions:

o Actually I am not a US citizen - but I have been working in the US at Pixar (I hope everyone has seen Toy Story II by now) for the last 4 years.

o Yes it was an investment property

o Because the Australian dollar fell from $1.20 to $0.67 over the last 10 years I made a capital loss of at least $80K US.

Roy "the flirtatous tax guru wrote":
<<Sure...stop by...leave one question...use us and abuse us...and then just leave. I'm crushed. >>

I write:
You're cute Roy - and free!

suzanne.green@juno.com


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