Subject: Assistance with Reporting Foreign Real Estate and Rental Income for My U.S. Citizen Son
Dear Intuit Support,
I would appreciate your guidance on how to properly report foreign assets and rental income for my U.S. citizen son, in accordance with current U.S. tax laws and foreign asset reporting requirements.
Here is our situation:
I am a U.S. resident and an immigrant from South Korea.
My son, a U.S.-born citizen, inherited real estate in Korea from his biological mother while he was still a minor.
Over the past 20 years, I have handled all legal and administrative matters in Korea on his behalf, including paying all inheritance taxes. This has also involved managing and personally handling multiple legal disputes and lawsuits related to the inheritance and properties.
As a result, two properties in Korea are now legally owned by my son.
Property 1 – Apartment:
This apartment generates monthly rental income. It is managed by a relative in Korea who takes care of maintenance and related costs. However, due to the difficulty of tracking detailed expenses, the relative sends me an approximate rental income amount twice a year.
Property 2 – Commercial Building (Joint Ownership):
This is an old commercial property jointly inherited with several other individuals. It has been part of a long-term urban redevelopment plan, and we have been awaiting government compensation for nearly 20 years.
Although this property is under my son’s name, I have been receiving the rental income on his behalf. My son is unfamiliar with Korean tax laws and legal systems, so I have assumed full responsibility for managing the property, including all legal and administrative duties, for about 20 years. This includes representing his interests in multiple legal proceedings over the years.
My questions are as follows:
How should these foreign properties and the associated rental income be reported on my son's U.S. tax return?
Which forms are required for compliance (e.g., FBAR, Form 8938, Form 3520, etc.)?
Does the fact that I have been managing the properties and receiving income on his behalf affect how they should be reported?
How should I handle reporting when income amounts are approximate and expense documentation is incomplete?
Thank you very much for your assistance.
Best regards,
Sang Noh
[email address removed]
