topic Form 3520 : mortagage distribution from a foreign bank in Deductions & credits

Form 3520 : mortagage distribution from a foreign bank

ihsansharief — Tue, 04 Jun 2019 22:50:41 GMT

I am a resident alien. Last year I took a mortgage loan (to purchase residential land in my home country, it does not yet have a home constructed on it). The loan was taken from the foreign bank (ie, in my home country).

Should this loan granted amount to purchase the residential land be reported in any form such as 3520 ?
Is it considered as foreign trust distribution even if it is from a Bank?

NOTE: The loan amount was paid by bank to seller and property title was transferred to me.

You do not need to file Form 3520 to report the proceeds...

ToddL — Tue, 04 Jun 2019 22:50:42 GMT

You do not need to file Form 3520 to report the proceeds of a mortgage loan.

Form 3520 is required only if:

1. You are the responsible party for reporting a reportable event that occurred during the current tax year, or you held an outstanding obligation of a related foreign trust (or an obligation of a person related to the trust) that you treated as a qualified obligation during the current tax year or;

2. You are a U.S. person who, during the current tax year, is treated as the owner of any part of the assets of a foreign trust or;

3. You are a U.S. person who received (directly or indirectly) a distribution from a foreign trust or;

4. You are a U.S. person who, during the current tax year, received either:

a. More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or

b. More than $15,601 from foreign corporations or foreign partnerships (including foreign persons related to such foreign corporations or foreign partnerships) that you treated as gifts.

None of theses situations apply to obtaining a mortgage from a bank to buy property.

Thank you very much for clarifying this query.

ihsansharief — Tue, 04 Jun 2019 22:50:46 GMT

Thank you very much for clarifying this query.