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Selling Property in China
Selling an apartment or house in China while you are a U.S. resident: the U.S. gain calculation, exchange-rate effects, the home-sale exclusion and credit for Chinese taxes.
What is included
- Cost basis and holding period records
- Gain computed in U.S. dollars with the right exchange rates
- Section 121 home-sale exclusion when you lived there
- Foreign tax credit for Chinese taxes paid on the sale
- Reporting the proceeds held in Chinese accounts (FBAR / Form 8938)
Currency can create a gain
The gain is measured in dollars: the purchase price at the old exchange rate and the sale price at the new one. A property that did not rise in yuan can still show a dollar gain, or loss.
Common questions
Is my home in China eligible for the exclusion?
Possibly — the Section 121 exclusion applies to a main home anywhere in the world if you owned and lived in it for two of the last five years.
Tell us your situation. We will tell you the fee.
A few short questions, a written quote within one business day, and a free 15-minute consultation if you would rather talk it through first.