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Level 3
posted Apr 3, 2021 2:06:48 PM

Should I report my foreign apartment, even if I'm only renting it as "not for profit"?

I am permanent resident and I own an apartment abroad. I rent it as "not for profit", thus I tax it as other income. I just put the total income on Schedule 1, in "8 Other income." to be exact. But I just write "Not for Profit Rental - $2,000". That's it, there is no more information about the apartment.

My question is: Should I file any other form that would tell IRS, that there is an apartment that I own?

I'm asking, because I owned the apartment before I became US resident (before I even came to the US), so IRS doesn't know about the fact that I own this apartment at all. I'm not sure if it's important or not, but I just wanted to verify.

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1 Best answer
Expert Alumni
Apr 3, 2021 3:11:01 PM

There are no IRS reports you must file on the ownership of the apartment unless it is part of a trust or other investment account (specified foreign financial asset)- so the way you are reporting is correct.

 

Per IRS, a specified foreign financial asset is:

  • Any financial account maintained by a foreign financial institution, except as indicated above 
  • Other foreign financial assets held for investment that are not in an account maintained by a US or foreign financial institution, namely:
    • Stock or securities issued by someone other than a U.S. person
    • Any interest in a foreign entity, and 
    • Any financial instrument or contract that has as an issuer or counterparty that is other than a U.S. person.

1 Replies
Expert Alumni
Apr 3, 2021 3:11:01 PM

There are no IRS reports you must file on the ownership of the apartment unless it is part of a trust or other investment account (specified foreign financial asset)- so the way you are reporting is correct.

 

Per IRS, a specified foreign financial asset is:

  • Any financial account maintained by a foreign financial institution, except as indicated above 
  • Other foreign financial assets held for investment that are not in an account maintained by a US or foreign financial institution, namely:
    • Stock or securities issued by someone other than a U.S. person
    • Any interest in a foreign entity, and 
    • Any financial instrument or contract that has as an issuer or counterparty that is other than a U.S. person.