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Sold Vacation home in United States that was never rented out, Sale price was under $300,00 so no witholding was witheld at closing. Property owned jointly and each share of gain on US 1040NR is $44,000. this is under thersold for US capital gains.
Does form 4797 have to be included with 1040NR since the sale is effctively connected with a trade or business. If form is need what section of form is completed.
Hi Randy,
Since the property was never rented out and is not connected with a business or trade, the gain from the sale would not be treated as effectively connected income with a U.S. trade or business. It would typically be reported on Schedule D (Form 1040NR) instead of Form 4797, as it is considered a capital gain from the sale of personal-use property.
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