I am purchasing land in the Philippines as a Naturalized US citizen. Can you help me understand any tax implications this could have for me?

I am purchasing the land to build a home for my mother that lives there. The land and future house will be under my name. I've given her enough money to purchase the land and was saving to have enough money to pay for construction of the home outright. A coworker suggested I look into securing a loan as it might be better taxwise or suggested that I may end up having to pay taxes in both countries. The land and home would be for personal use and not commercial.

Deductions & credits

you present conflicting statements. "I am purchasing land in the Philippines." "I've given her enough money to purchase the land."   this is a US income tax forum, we don't answer other legal questions. There may also be gift tax issues involved. you need a lawyer familiar with the laws with regard to property and tax laws in both countries.

 

Deductions & credits

I sent her funds monthly for living expenses with enough overage to save for purchase of the property. She told me that she would put everything under my name instead of hers so that's why I am questioning on how to handle as it wasn't something I was planning or intending to happen. Thank you for the response and for redirecting my inquiry. I will look for a lawyer/CPA that can assist with this sort thing.

Carl
Level 15

Deductions & credits

Where are you presently located at? I do know that CA and FL have a number of those in the financial tax advisory business who are well versed on tax and other laws pertaining to real estate ownership in the Philippines. I myself lived in the PI for 8 years. If you're military (retired or active) then that opens up a whole lot more options for you in finding a well versed advisor that can help with this and educate you on the options that may be available to you. Finally, which island in the PI? Luzon? Cebu? Samar? Or one of the other 50 plus islands?