Do I need to declare my property I own in India, to IRS in US (under foreign assets declaration rule), even if I am not renting it?
I bought a house in India in 2007 and it is jointly owned by me and my father. Currently my parents live over there. Do I need to declare that property to IRS in US?
asked on November 27, 2013
answered on December 04, 2013
Foreign Asset Declaration:
As per IRS requirement, foreign real estate is not needed to be reported on Form 8938. Since, this is your personal residence you are exempt from the disclosure. If the person is a resident or non resident alien, any global income should be included. Since, you mentioned you are not renting the property you should be fine.
IRS Disclosure Requirement:
- You are required to file for form 8938, only if you maintain financial accounts in foreign financial institution. For example, savings, deposit, checking and brokerage accounts. You need to report financial investment other than financial account which includes stocks, bond, debenture, an option, interest in foreign retirement plan, interest in foreign estate, interest in foreign insurance contract and partnership interest in a foreign partnership.
- If the real estate is held through a foreign entity, such as corporation, partnership, trust or estate. The interest earned in the entity is a specified foreign financial asset. And, as per the IRS rule all foreign financial asset needs to declared on form 8938 if the total value of all specified foreign financial assets is greater than the reporting threshold applies to you. But the real estate itself is not separately reported on form 8938.
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