Sale of an international property

[Keila Rosario]

Hi guys, I have a tax question in regards to the sale of a property that I am about to own in the Dominican Republic. I have dual citizenship with the DR. In December of 2017, I separated an apartment in the dr before it’s construction. The way it works over there is that you pay the down payment while the property it’s being build. So I’m done paying the down payment, and the property is also ready to be handed to the owners once the balance left is paid. I applied for a loan from a local bank in the dr and it has been approved. I have not signed the contracts yet. Anyways, I separated the apartment for $102,500 I did some updates to the original plan which added 2k to the balance. I had a real estate agent post the property for sale. He posted it for $115,800. 5k belongs to him and I would be left with $38,426 after paying the remaining balance. I have paid a total of $34,335.29 for the down payment. I want to know if I will be taxed on this money. The only gain that I would be making is $4,091. I want to sell the property because it will have a negative cash flow if rented. I originally bought it to be use for personal use. Someone help! Excuse my grammar/spelling I wrote this during my 2 minute break at work.