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    naseemgilani's Avatar
    naseemgilani Posts: 1, Reputation: 1
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    #1

    Oct 4, 2017, 02:38 PM
    Foreign Real Estate
    Hi,

    Do I need to report foreign real estate on 1040 or form 4938 or F-BAR if it is in held in individual's name and not through interest in foreign partnership or corporation and I get rental income from it

    Also, the rental income from that foreign property needs to be reported on Sch E of 1040. Is that correct?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Oct 4, 2017, 04:08 PM
    Rental real estate is considered a HARD capital asset, not a liquid financial asset.

    Only LIQUID financial assets like bank accounts, stock account, mutual funds, insurance policies with cash value and such are reported on Form 8938 and on the FBAR (FinCen Form 114).

    As for the rental income, if you are a U.S. citizen, U.S. resident (green card holder) or a resident alien, ALL world-wide income must be reported on your tax return, which, for rental income, would be on Schedule E, along with the expenses associated with the rental (mortgage interest, real estate taxes, repairs) plus depreciation.
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