I am planning to sell some real estate in europe, Do i have pay income taxes in the U.S?
I am assuming that you are asking because you are a US citizen or permanent resident. There are two answers (you didn't think tax was simple did you?). If the real estate is in a country that has a tax treaty with the US, you probably will only pay tax in the country where the property is located. If not, you will pay tax in the foreign country and get a foreign tax credit for the tax paid. If the tax rate in the country of sale is less than the US capital gains tax rate, you would also owe tax here.
Source(s):
The IRS has published some guidance http://www.irs.gov/pub/irs-pdf/p901.pdf...
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