Rental properties overseas are just like any other asset that you may own. However, there are a few differences. And a couple of them are very important to remember.
CALCULATING CAPITAL GAINS ON YOUR RENTAL PROPERTY
When you sell your home overseas, there may be exchange differences money wise. You must calculate the capital gains based on the specific selling date of your home. When it comes to calculating your capital gains, take into consideration whatever improvements you have done to your rental property such as kitchen remodeling, a roof replacement, flooring or any other large expenditures thaw were not written off during the rental years.
Additionally, you will be able to write off all the commissions and all the expenses that incurred at the time of the sale.