United States citizens who move to other countries still need to file their taxes and report their assets, which means that they have to report the real estate that they own in other countries.
Do I need to report my foreign financial assets?
If you have a financial account maintained by a foreign financial institution and the value of your specified foreign financial assets is greater than the reporting threshold that applies to you, you need to report the account on Form 8938.
What do you need to know about foreign asset reporting?
And, to the extent held for investment and not held in a financial account, you must report stock or securities issued by˜someone who is not a U.S. person, any other interest in a foreign entity, and any financial instrument or contract held˜for investment with an issuer or counterparty that is not a U.S. person.
What happens if you own real estate in a foreign country?
Owning foreign real estate within any type of entity typically forces you to report that ownership on one of a number of IRS forms including the new Form 8938 – Statement of Specified Foreign Financial Assets. This form is one of the forms from all of the FATCA laws recently enacted.
Do you have to report foreign assets on Form 8938?
A foreign account is a specified foreign financial asset even if its contents include, in whole or in part, investment assets issued by a U.S. person. You do not need to separately report the assets of a financial account on Form 8938, whether or not the assets are issued by a U.S. person or non-U.S. person.
Do you have to report foreign real estate on FATCA?
IF you own your foreign real estate directly as an individual, there is good news. You do not have to report that property on Form 8938 or other FATCA forms even if it is a rental property. Any real estate taxes you pay on that property may be deducted on your itemized deduction schedule on your Form 1040.
