Good morning!! I was wondering if

here , all info , for you http://www.finanze.gov.it/opencms/it/fiscalita-comunitaria-e-internazionale/convenzioni-e-accordi/convenzioni-per-evitare-le-doppie-imposizioni/andhttp://www.finanze.gov.it/export/sites/finanze/it/.content/Documenti/Varie/USA_1999-Testo_IRS_en.pdf

In Italy you will not pay capital gains tax on the sale of a property (assuming you have owned it for for more than 5 years as a non resident) The property is in Italy and the earning (ie the sale of the house) is in Italy. If you take the money back to the US then what the IRS decide is up to them - but if the money stays in Italy, it's yours to do with as you please.

As a US citizen you are normally taxable in the US on worldwide income or gains, whether or not remitted to the US - subject to any special rules and the double tax agreement between the US & Italy.

My understanding is that as a US citizen who owns property in Italy, you pay tax on capital gain when you declare your income tax on April 15. When you sell your property, the difference between what you paid and what you sell is taxable income, if you sell at a profit. I think you can deduct from your taxable income expenses such as maintenance, repairs, and improvements. Can someone tell me if I am wrong?

PS: By tax on capital gain I mean a tax payable in the United States, not in Italy.

Hi Franco , read page 21 at https://www.agenziaentrate.gov.it/wps/wcm/connect/f4eea9004bb1ef709470f5d94f8d55f4/annuario.online.Parte+II.def_1502.pdf?MOD=AJPERES&CACHEID=f4eea9004bb1ef709470f5d94f8d55f4

Grazie Ugo,
Io e mia moglie siamo cittadini americani e abbiamo acquistato un appartamento 10 anni fa, che adesso dobbiamo vendere. Non venderemo in profitto e secondo la legge americana non dovremmo pagare nessuna tassa sul reddito, anzi, dovremo dichiarare una perdita da scalare dalle nostre tasse ordinarie. Per quanto riguarda l'Italia, secondo il divieto della doppia tassazione, mi pare di capire che al momento della vendita non ci dovrebbero essere tasse da pagare.

esatto Franco , niente tasse , anche perche' il termine dei 5 ani per i privilegi prima casa , è scaduto -inoltre anche se tu vendi in profitto,in atto devi dichiarare , ai fini fiscali , il valore catastale , che , molto probabilmente , nei dieci anni, se non hai fatto molte migliorie , e ottenuto una revisione del valore catastale - non è cambiato, rispetto al valore dichiarato in atto di acquisto.--Exactly Franco, no taxes, also because the term of 5 years for the first house privileges, has expiredmoreover, even if you sell in profit, you must declare, for tax purposes, the cadastral value, which, most likely, in the ten years, if you have not done many improvements, and obtained a review of the cadastral value - it has not changed, with respect to the declared value in place of purchase.