No, you do not have to pay US taxes on a home owned outside of the US for personal use.
There is no US tax for owning property outside of the US, and you may be able to deduct interest paid on any mortgage that you may have. You cannot deduct any foreign property taxes.
Mortgage interest on a second home is deductible on your tax return for taxpayers who itemize their deductions. You can deduct interest on a second home that:
- Is not rented; and
- It satisfies all of the same requirements as deductible interest on a primary residence.
The mortgage interest deduction is subject to the same limitations as your primary mortgage. You can find everything you want to know about home mortgage interest deduction by clicking on this link: IRS Publication 936.
There is also no tax on the transfer of funds to a foreign bank. You would report only interest or dividends that you earn on the deposits on your tax return.
The FBAR reports are informational only, and there is no tax associated with filing them.
TurboTax doesn't support this form. However, you can easily file your FBAR at this website: BSA e-Filing System.
TurboTax can help you take advantage of any tax breaks associated with your purchase. I am happy to inform you that you will not have any additional US tax due on this purchase under current tax law.
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