How much taxes will i have to pay from a foreigh sale of 225 thousand dollars???

Question

my dad just sold a property ( land ) in his native country , so i was wondering how if he needs to report that to the IRS and if he does how much money will it be???

Answer 1

Yes, it must be reported.

Only the gain (difference betweeen selling price and what he paid for it when he bought it) is taxed.

If he held it long enough, then it is a long-term capital gain and the tax rate is no more than 15%.

If it was his primary residence, he might qualify for an exemption from the tax, but not from the reporting requirement.