@Helen123 ,
1.Based on what you mentioned, oversea real estates are not needed to be reported. Therefore, when we say foregian account balance reaches 10 k USD (Fbar) or 50k USD (8938), I assume it also excludes the value of oversea real estates, right?
For both FBAR and FATCA there is no recognition / reporting requirement for immoveable asset ( generally capital asset ). Thus when computing for FBAR it is ONLY cash ( at anytime during the tax year ) and for FATC A ( form 8938 it is generally stocks /bond , cash/ savings accounts / investment accounts / tax preferred accounts like pension accounts etc. etc. -- anything that is liquid or semi liquid ) . Note that Real Estate assets are NOT included in FATCA.
2. In terms of oversea mortage, I assume I do not need to report it, right? If my mortage interests cost is above the standard deduction (at moment not), I can choose to report my oversea mortage. But if I do not want to report it, I do not need to. Is it correct?
For Personal Real Estate there are two different kind ---- main residence and 2nd. home . The mortgages on each is recognized as a deduction if you itemize ( ilo standard deduction ) but the current law has a limit established based a maximum amount of loan debt. If you use standard deduction ( Turbo will Ask you for all the details about the constituents of itemized deduction and suggest the best path for you ), you cannot use any other deduction except for charitable contributions to 501(c) entities ( with receipt ). But you can always choose top ignore the itemized deduction entries and let Standard deduction be the choice.
3. In the future, if I want to rent out my oversea flat after my husband comes in USA, can I only claim the mortage cost after it is above the standard deduction or I can enjoy both standard deduction and the mortage cost as the expense if I rent it out?
When ,and if , you choose to rent out your props . in the UK, these will then be categorized as "income property " and must be rented at Fair Market Value/ Rent. As a US person, you must declare your world income to the USA and be taxed. Thus your rental income ( reported on Schedule-E ) recognizes , gross income, all the allowable ( under US laws and which may be different from the HM laws ) expenses, recognize depreciation, property taxes, ground rent etc. . Any gain ( income LESS expenses ) is taxed as ordinary income ( your marginal tax rate ). Before you do this though I would highly recommend you to spend some time perusing through the below pubs from the IRS -->
p527.pdf (irs.gov)
p519.pdf (irs.gov)
i1040se.pdf (irs.gov)
I hope this gives you enough to prepare for the 2024 tax filing season
pk
