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February 26, 2024
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Foreign Real Estate Purchase for Personal Use (only made down payment)

  • February 26, 2024
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If I made a down payment for an apartment outside of USA a few months ago would turbotax be able to support me and would I need to declare it? I have made a down payment of roughly 50k and the apartment alongside the building is still being built in the foreign country. At the end of this year I am expected to pay the rest of the apartment price. The down payment I made a few months ago was a way to secure the apartment while it's being built.

 

Once the apartment is built, it will not be used for rental, just for personal use so I won't make an income off of it. So do I need to report this purchase when filing my taxes this year or do I report it only after I pay for it in full the coming year? 

 

To pay for the down payment, I made a wire transfer to the foreign property's bank. I, myself, don't have a foreign bank account. 

 

Please advise and thank you.

Best answer by DaveF1006

No, you have no reporting requirement for the purchase of your foreign residence since it is not an specified foreign asset on a FATCA or FBAR report. You also would not report the down payment to an foreign account you do not own. 

1 reply

DaveF1006
DaveF1006Answer
February 26, 2024

No, you have no reporting requirement for the purchase of your foreign residence since it is not an specified foreign asset on a FATCA or FBAR report. You also would not report the down payment to an foreign account you do not own. 

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February 28, 2024

Great to know, thank you!