Buying a home outside of the US

[cmallow17]

Hello!

If I purchase a home outside of the United States this year, are there any tax implications I should be aware of? For example, I know that FBAR reporting is required for bank accounts, but does it also apply to foreign assets (i.e., a house?). Is there anything I would need to report?

Thank you!

[marctu · Accepted solution]

The purchase of real estate abroad doesn't generally have to be reported to the IRS.  However, you have to report any transfers of funds over $10,000 that you make to a foreign bank account intending to buy a property abroad, though.

If this is a second personal home you can deduct, to the extent you itemize your deductions, the mortgage interest.  Since 2017, you are unable to deduct the taxes. 

Thank you for your question @cmallow17 

All the best,

Marc T.

TurboTax Live Tax Expert

27 Years of Experience Helping Clients

[cmallow17]

Dear Marc,

Thanks for the quick reply! Do you happen to know which form I would need to use to report the transfer of money? Will TurboTax prompt me to fill out that form when I file with TurboTax, or is that a separate form I will need to find and file on my own?

Thanks!

[marctu]

Last year we offered in a limited pilot the filing of the FBAR, though I am not sure that will continue this year.  You would file the form using the BSA E-filing system.  See this link:  Individuals Filing the Report of Foreign Bank & Financial Accounts (FBAR) 

Thank you for your follow up question @  cmallow17

All the best,

Marc T.

TurboTax Live Tax Expert

27 Years of Experience Helping Clients

[cmallow17]

Thank you very much, this is super helpful, Marc!