gift of real estate in foreign country

Technical topics regarding tax preparation.
#1
JAD  
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Dad, US citizen and resident, owned land in Canada. Land was owned directly as an individual, not through any entity. Dad gave land to his US citizen and resident children. They each either own their interest in the land as individuals or through their living trusts. Land is not income producing. They pay a little property tax and that is it.

I have looked and do not see any disclosure requirements related to this foreign property. Am I missing anything?

Thanks!
 

#2
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Generally ownership of foreign real estate directly or through a US entity avoids a lot of the "normal" obligations.

Foreign real estate by itself is not a specified foreign financial asset (8938).

If it's not held through a foreign entity there's no 5471/8865/8858 exposure.

If there is a foreign bank account that's used to pay the related expenses in local currency, you'd want to examine your client's FBAR exposure, but that's all I can think of at the moment.
 

#3
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JAD wrote:disclosure requirements related to this foreign property.


Assuming you're referring to the US reporting of foreign financial assets, then you're correct there is no specific reporting required for raw land held directly.

I'm sure you've addressed any US gift tax issue, if any.

And the good news: there is no gift tax in Canada.
 


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