.png)
.png)
23 August 2016
Accounting for a currency gain and costs on the sale of a US property.
A client who is a UK resident individual bought a property in the US in 2010 for $150 000 and acquired the US dollars when the exchange rate was 1.65 to the £1. The property was rented out and the income has been returned both in the UK and on a US tax return.
The client has now sold the property for $250 000. After allowable costs such as the American estate agent’s fees of $15 000 the net gain is around $85 000. However in truth the gain is much more than that because the pound is now trading at about 1.30 to the dollar. My client has also therefore made a currency gain of about 25% when he converts the sale proceeds to sterling. My questions are as follows.
- How should he account for the currency gain to the UK...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
