Q: I own a piece of property overseas which was purchased by my mother and put in my name. Do I pay US taxes on the sale?

A: As a U.S. citizen, you are generally required to report and pay taxes on your worldwide income, including any capital gains from the sale of foreign property. However, the exact tax implications will depend on several factors:

1. Capital gains tax: If you sell the property for more than its purchase price (cost basis), you may owe capital gains tax on the profit. The tax rate will depend on how long you owned the property and your income tax bracket.

2. Foreign tax credit: If you paid taxes on the sale to the country where the property is located, you might be eligible for a foreign tax credit on your U.S. tax return. This credit can help offset your U.S. tax liability and avoid double taxation.

3. Gift tax: Since your mother purchased the property and put it in your name, it may be considered a gift. If the value of the gift exceeds the annual gift tax exclusion amount for the year the transfer was made, your mother may have been required to file a gift tax return. However, this does not typically result in an immediate tax liability due to the high lifetime gift and estate tax exemption.

4. Reporting requirements: You may need to report the sale on your U.S. tax return and file additional forms, such as Form 8938 (Statement of Specified Foreign Financial Assets) or FinCEN Form 114 (Report of Foreign Bank and Financial Accounts), depending on the value of the property and other factors.

It is highly recommended that you consult with a tax professional specializing in international tax matters to ensure you comply with all U.S. tax laws and reporting requirements related to the sale of your foreign property.