@zjna101 , having read through your post:
1. you bought a foreign prop. in XX/xx/2021 with a foreign loan ( foreign lender ) and cash down from your US bank account(s)
2. the seller stayed on the prop. as part of sales agreement at nil rent
3. you started using the foreign prop. as your main residence sine Jan 2023.
A. The funds you transferred to foreign bank / closing entity would have been flagged by the US bank but you do not need to report this to any US agency ( IRS or US treasury ). This is pretty routine for any and all foreign money transfers over US$10K.
B. If the transfer involved a bank account that you own/ control in a foreign country FBAR and FATCA reporting may come into play. Thus for 2021 if the purchase resulted in you transferring monies (from your US bank) to a local account owned by you , then you should have filed a form 114 ( FinCen.gov ) for FBAR reporting. However , if the monies were transferred to an escrow account operated / owned by local entity, then you do not have to report this for FBAR purposes. Ditto for FATCA .
C. The fact that you own foreign real-estate does not require any reporting.
D. The fact that your new prop. was a second home for a short while, allows you to report the mortgage interest paid along with that of your home in the USA -- but the same value limits apply.
E. Because you did not use the new prop as a rental / income prop. and actually received NIL rent, requires no Schedule-E reporting ( rental income and expenses ).
F. For purposes of future disposal of the property ( the new foreign prop.), your ownership starts from the day after the closing on the property and Main-residence timing starts from the day after you moved in and started using this as your main home.
G. The sale of your old home in the USA ( your old main residence ) is reported in 2022 and may be eligible for gain exclusion ( iff you meet the ownership, use and other requirements ).
H. Note that for the future you need to record the acquisition cost of the prop. in US$ on the day of closing.
Does this answer your questions?
Is there more I can do for you.
pk
@Anonymous_
