Do I have to report foreign real estate I own?
Directly owned foreign real estate generally is not reportable on the FBAR or Form 8938 — a flat you own outright in India or a house in your home country isn't a 'financial account' or a specified financial asset. So buying property abroad usually doesn't add a reporting form just for owning it. But there are important catches. First, any rental income from that property is taxable on your U.S. return as worldwide income, and you'd report it (claiming a foreign tax credit for tax paid abroad). Second, if you hold the property through a foreign entity or trust, that ownership structure can become reportable. Third, a foreign account you use to collect rent or hold sale proceeds is itself FBAR-reportable. So the building isn't reported, but the cash flows and any holding structure can be. Keep clean records of rent received and foreign taxes paid.
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