The automated plan format

# Foreign Property Sale — U.S. Reporting Plan

**Accepted question:** Explain the difference between the contract price and cash received for the 2025 sale of one foreign property, identify the supported acquisition and payment records, and specify the remaining U.S. preparation questions.

**Scope:** One purchased, directly held, personal-use property in Ecuador; one household; one completed sale; reporting year 2025. Automated source audit; no human review.

## Accepted facts

- **Country and year:** Ecuador; 2025 (client organizer, not independently verified) _(Client organizer, p. 1)_

## Reconciled proceeds (cash movement)

| Item | Amount | Currency | Status | Source |
| --- | ---: | --- | --- | --- |
| Gross contract price | 150,000 USD | USD | Extracted — not yet confirmed | fictional-sale-contract, p. 1 |
| Selling fees | 5,000 USD | USD | Extracted — not yet confirmed | fictional-closing-statement, p. 2 |
| Local withholding | 1,000 USD | USD | Extracted — not yet confirmed | fictional-closing-statement, p. 2 |
| Mortgage payoff | 20,000 USD | USD | Extracted — not yet confirmed | fictional-payoff, p. 1 |
| Expected net receipt | 124,000 USD | USD | Extracted — not yet confirmed | fictional-sale-contract, p. 1; fictional-closing-statement, p. 2; fictional-closing-statement, p. 2; fictional-payoff, p. 1; fictional-bank-receipt, p. 1; fictional-purchase-contract, p. 1 |
| Actual bank receipt | 124,000 USD | USD | Extracted — not yet confirmed | fictional-bank-receipt, p. 1 |
| Unexplained difference | 0 USD | USD | Extracted — not yet confirmed | fictional-sale-contract, p. 1; fictional-closing-statement, p. 2; fictional-closing-statement, p. 2; fictional-payoff, p. 1; fictional-bank-receipt, p. 1; fictional-purchase-contract, p. 1 |

_This table reconciles cash movement between the contract price and the amount received. It does not compute taxable gain, adjusted basis, exclusion eligibility, or any allowable foreign tax credit. A mortgage payoff reduces cash without reducing taxable gain, and a bank deposit is not proof of taxable gain._

Reconciliation columns: Contract proceeds, Selling costs, Withholding, Expected net receipt, Actual bank receipt, Difference, Explanation.

## Acquisition and basis evidence status

| Item | Amount | Status | Source | Note |
| --- | ---: | --- | --- | --- |
| Purchase evidence | 80,000 USD | Extracted — not yet confirmed | fictional-purchase-contract, p. 1 |  |
| Improvement evidence | Unresolved | Unresolved | — | The cited excerpt does not support this amount and category. |

## Currency-conversion method to confirm or apply

- **Method:** Keep each transaction in its original currency. Determine the appropriate transaction-date USD conversion separately; no exchange rate is inferred here.
- **Rate source:** https://www.irs.gov/individuals/international-taxpayers/foreign-currency-and-currency-exchange-rates
- **Applies to:** Acquisition, improvements, disposition, expenses, and foreign-tax payments may require separate dates and rates.
- **Status:** Unresolved

## U.S. income and reporting issue map

| Area | Question | Status | Note |
| --- | --- | --- | --- |
| Property disposition | Which disposition forms and supporting basis records are needed? | Unresolved | Review personal-use history, acquisition evidence and disposition details before preparation. No gain, exclusion, or tax result is determined. IRS reference: https://www.irs.gov/publications/p523 |
| Foreign financial accounts | Do proceeds held in foreign financial accounts create separate reporting questions? | Unresolved | Directly held foreign real estate and foreign accounts require different analysis. Review ownership, account balances and applicable requirements separately. IRS reference: https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements |
| Foreign tax | What foreign-tax payment evidence and separate eligibility analysis are needed? | Unresolved | Withholding in a cash bridge does not establish an allowable credit. IRS reference: https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit |

## Records gaps

- Adjusted basis, exchange-rate selections, exclusion eligibility, filing obligations, and foreign-tax credit eligibility remain unresolved.

## Ordered actions

1. **Buyer** — Compare each cited document/page with the extracted figures. Keep the original records and resolve any mismatch.
2. **Buyer** — Collect the missing closing categories and support any zero amounts explicitly. _Required record: Retain the cited source pages.._
3. **Buyer** — Collect acquisition date, sale date, ownership/use history, improvement evidence, and transaction-date exchange-rate sources.
4. **Buyer** — Use the issue map and source-linked plan when arranging tax preparation; confirm the actual reporting treatment independently.

## Separately quoted preparation next steps

Return, FBAR, and information-return preparation and filing are separate services. This automated plan does not submit returns or determine a final tax position.

### Appendix — transaction table

| Item | Date | Original amount/currency | Proposed U.S. treatment (to review) | Source/page | Verified/unknown | Next action |
| --- | --- | --- | --- | --- | --- | --- |
| Gross contract price | Unresolved — confirm source date | 150000 USD | Unresolved — separate tax treatment analysis | fictional-sale-contract, p. 1 | Extracted; no independent human verification | Check the cited original page. |
| Selling fees | Unresolved — confirm source date | 5000 USD | Unresolved — separate tax treatment analysis | fictional-closing-statement, p. 2 | Extracted; no independent human verification | Check the cited original page. |
| Local withholding | Unresolved — confirm source date | 1000 USD | Unresolved — separate tax treatment analysis | fictional-closing-statement, p. 2 | Extracted; no independent human verification | Check the cited original page. |
| Mortgage payoff | Unresolved — confirm source date | 20000 USD | Unresolved — separate tax treatment analysis | fictional-payoff, p. 1 | Extracted; no independent human verification | Check the cited original page. |
| Actual bank receipt | Unresolved — confirm source date | 124000 USD | Unresolved — separate tax treatment analysis | fictional-bank-receipt, p. 1 | Extracted; no independent human verification | Check the cited original page. |
| Purchase evidence | Unresolved — confirm source date | 80000 USD | Unresolved — separate tax treatment analysis | fictional-purchase-contract, p. 1 | Extracted; no independent human verification | Check the cited original page. |
| Improvement evidence | Unresolved — confirm source date | Unresolved | Unresolved — separate tax treatment analysis | Unresolved | Unresolved | Check the cited original page. |

### Estimates and assumptions (labeled)

- Client scope answers are not independently verified. Source excerpts may omit relevant context.

### Notices and limits

- AI-generated, with automated checks and no Chip or other human review. This is a records and reporting-questions plan, not tax or legal advice, a valuation, return preparation, or a guarantee.
- Unsupported amounts remain null; the closing bridge describes cash movement only.
- Retain the private link. The plan is available for thirty days; download and save a copy. Submit a factual correction through the same private delivery page within seven days.