Did you know offshore real estate ownership carries IRS reporting requirements? If you are a US taxpayer or US resident you need to be aware of the IRS reporting requirements associated with the ownership of foreign real estate.
There are many ways you may hold title to the offshore real estate – you may hold it personally, or it may be held by an LLC, foreign trust, foreign corporation or other legal vehicle. In any case, if you own property, even in Canada or Mexico, offshore real estate ownership carries IRS reporting requirements and you are required to disclose your interests and provide detailed information to the IRS.
Allen Barron is uniquely positioned to advise you on your foreign trusts, offshore accounts and investments and real property. Our international tax attorneys can help you to come into compliance with IRS reporting, and ensure that you have properly completed and filed associated forms such as FBAR and IRS Form 8938. The method of ownership determines the specific reporting that must be submitted.
There are sophisticated and complicated rules relating to the valuation of your property, as well as any income generated by the real property and associated bank accounts. The IRS has recently developed mutual and reciprocal reporting relationships with international banks and foreign sovereign tax agencies. These offshore agents are providing direct information to the IRS including your ownership interest and transactional details. The failure to accurately report these assets and any associated income can open you to heavy financial exposure including taxes, penalties, fines and interest.
If you hold any interest in foreign real property you need to know offshore real estate ownership carries IRS reporting requirements. We invite you to contact our experienced international tax attorneys or call today to schedule a free and substantive consultation at 866-631-3470. Learn about the protections of the attorney-client privilege and how Allen Barron’s tax attorneys can help to evaluate your exposure and bring your offshore accounts and assets into full compliance with the IRS.
