Carl
Level 15

Investors & landlords

Are you claiming "anything" for the property on your U.S. tax return? I ask, because even though it's foreign property, at a minimum you can claim property taxes and mortgage interest. If it's a rental, then you can also claim the cost of property insurance along with other rental expenses.

If you have not been claiming anything at any time on your U.S. tax return for this property, and have not received any financial benefit either directly or indirectly from the property, then I see no problem. But.... (yes, there's always a but)

Depending on the legalities of how you "gifted your parents the rights", this creates a bit of ambiguity.

In the U.S. this is referred to as a Ladybird Deed, and you can read about that to see what I'm referring to at https://www.deedclaim.com/lady-bird-deed/  I don't know if or how that would apply in your situation since there's the complexity of foreign property that was foreign owned being transferred to a green card holder legally residing in the U.S.

Even if someone else in this public forum can provide us insight to this, I would still highly suggest you seek the services of a tax professional well versed in foreign property transfers. Especially if your resident U.S. state also taxes personal income. Even so, I hope others will jump in here and be able to include IRS pubs or statutes in their responses. This is not a scenario we see all that much in this public forum.