Hi,
Trying to figure out how IRS, regarding an offer in compromise (OIC) makes determinations on reasonable collection value for foreign homes.
My wife and I live overseas in an apartment we bought last year. Home equity lines of credit are not offered here. We made 50% down payment, with 15 year mortgage. The tax debt arose from me making early IRA withdrawal, and we weren't married when I was contributing to the IRA. Those are the just the circumstances.
Now, does the IRS treat this in usual manner, estimating quick sale value, even for a foreign home not in my name? If I file taxes not jointly, does that make a difference? That is, if I file separately, and the debt is just on my return, does IRS still force me to sell a home, if it is only in spouse's name?
There is no viable long term rental market where we live, as most people own their homes. So per square meter, renting is prohibitively expensive compared to buying, and availability of suitable apartment is pretty much non existent. So if we sold to pay my 2021 tax debt, we would be back in position of needing to buy, but without the necessary money for a down payment. As it is we live in fairly small place, where I have home office needed to generate expected future income.
Anyway, curious if anyone has thoughts/insight into angles on this, so that the home equity would not be considered realizable as part of the OIC determination.
thanks
