I am a resident in the USA and pay taxes in the USA. I have a house in Brazil that I am selling, with profit. AIUI, the profit is tax-free because I have lived more than 2 of the past 5 years in that house, and the profit is less than $500k (joint return).
However, I will receive the payment later, possibly years later. At the point when I will receive the payment, the profit likely wouldn't be tax-free anymore.
If I simply include the sale of the house in my taxes, say in 2016, my actual assets wouldn't reflect that sale, and later, say in 2018, I all of a sudden would receive a large sum from Brazil, without a corresponding entry in my tax report. An additional complication is that I need to file a "Report of Foreign Bank and Financial Accounts" (FBAR), and it also wouldn't reflect a payment received in 2016, but later, in 2018.
Am I right in assuming that the sale is tax-free in 2016, even though the house is in Brazil and I won't receive the payment anytime soon? How would I register the sale, and years later the corresponding receipt of the payment?