Hello fellow Redditors,
I'm seeking guidance on tax implications for my wife, a Korean national living in Japan on a spouse visa. She owns a property in Korea, which she purchased about 6 months before moving to Japan. Since she didn't live in the apartment for a long time, it is not considered her main residence so the sale is taxable in Korea. She bought it for 408,000,000 wons and it would now be sold for 650,000,000 wons.
As a resident in Japan for more than 5 years, she's considered a Japanese tax resident. My understanding is that she should pay taxes on the capital gain in Korea first, then report the sale on her final tax return in Japan using the foreign tax credit system?
Am I correct in assuming that she'll need to pay any difference in taxes between Japan's capital gains tax and Korea's on the sale if any? Additionally, she should record the cost basis and sale price in JPY, using the exchange rate at the time of acquisition and sale, correct?
The Korean real estate agent fee can be deducted from the sale price?
Is there some important things I should know? I read dozens of reddit posts in this sub but I want to make sure I'm not missing something here.
by 42pizza