It is reported in the year sold. If it was a rental property, you might be able to avoid paying taxes on any capital gain through a IRC 1031 like-kind exchange. The qualifying property for the 1031 exchange must be another foreign property. Note, that there are very specific timelines within which you need to purchase a new property, as well what you do with the money in the meantime. If you don’t qualify for a 1031 exchange, you may also be able to exclude some or all of the property gain through IRC 121.