I invest in foreign real estate through a real estate development company and understand that I have to fill out Form 8938 reporting the value of the real estate.

[rlarcher]

My question is: when the development is finalized (real estate built and Title issued on my name), and the contract with the development company no longer exits, then should I stop reporting the real estate on Form 8938 on my future tax returns?

Should I report it somewhere else instead? Or I don't have to report it at all?

Thank you!

[KurtL1]

If the foreign properties are still in your name and the meet the requirements to file Form 8938, you would be required to file the form with your return. The filing requirements are:

Specified individuals living in the US:

• Unmarried individual (or married filing separately): Total value of assets was more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the year.
• Married individual filing jointly: Total value of assets was more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year.

Specified individuals living outside the US:

• Unmarried individual (or married filing separately): Total value of assets was more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the year.
• Married individual filing jointly: Total value of assets was more than $400,000 on the last day of the tax year, or more than $600,000 at any time during the year.

Specified domestic entities:
Total value of assets was more than $50,000 on the last day of the tax year, or more than $50,000 at any time during the tax year.

[rlarcher]

Hello Kurt, thank you for the reply.

I am confused. I understood that I had to report the foreign real estate on Form 8938 while it is held through a foreign corporation. Once the Title was transferred to my name (and the foreign corporation is no longer part of it), then I did not have to report the foreign real estate on Form 8938.

I kept searching the web and found the following from the IRS page:

"Foreign real estate is not a specified foreign financial asset required to be reported on Form 8938.  For example, a personal residence or a rental property does not have to be reported.

If the real estate is held through a foreign entity, such as a corporation, partnership, trust or estate, then the interest in the entity is a specified foreign financial asset that is reported on Form 8938, if the total value of all your specified foreign financial assets is greater than the reporting threshold that applies to you.  The value of the real estate held by the entity is taken into account in determining the value of the interest in the entity to be reported on Form 8938, but the real estate itself is not separately reported on Form 8938. "

https://www.irs.gov/businesses/corporations/basic-questions-and-answers-on-form-8938

I think it is clear now that, if I own the foreign real estate without a corporation, then it does NOT need to be reported on Form 8938.

[DaveF1006]

i reread that section in the IRS link you provided and if it is in your name and not a corporation, you do not need to report on a 8938.