form 8938

jalways747 · Post by **jalways747** » Sat Apr 06, 2013 9:28 am

is foreign rental property considered a foreign financial asset ?

Taxpoor · Post by **Taxpoor** » Sat Apr 06, 2013 11:35 am

Directly from the IRS website;

Foreign real estate is not a specified foreign financial asset required to be reported on Form 8938. For example, a personal residence or a rental property does not have to be reported.

If the real estate is held through a foreign entity, such as a corporation, partnership, trust or estate, then the interest in the entity is a specified foreign financial asset that is reported on Form 8938, if the total value of all your specified foreign financial assets is greater than the reporting threshold that applies to you. The value of the real estate held by the entity is taken into account in determining the value of the interest in the entity to be reported on Form 8938, but the real estate itself is not separately reported on Form 8938.

jalways747 · Post by **jalways747** » Mon Apr 08, 2013 12:21 pm

thanks.

do we need to take depreciation for US rental property ? or is it optional ?

JGCA · Post by **JGCA** » Mon Apr 08, 2013 8:39 pm

For IRS purposes you must take depreciation unlike Canada where it is optional.

nelsona · Post by **nelsona** » Tue Apr 09, 2013 10:05 am

... and for IRS purposes, ALL rental property must be depreciated, regardless of location.

ND · Post by ND » Wed Apr 10, 2013 7:38 pm

I thought that there was no requirement per se to claim depreciation BUT that if it were not claimed, basis must still be adjusted for depreciation allowed to be claimed. Comments?

JGCA · Post by **JGCA** » Wed Apr 10, 2013 11:07 pm

If you do not claim depreciation on your 1040 the irs will say you did regardless and yes basis will be lowered so you will have recapture up to original basis when you sell it, so why not claim it.

nelsona · Post by **nelsona** » Wed Apr 10, 2013 11:47 pm

Yeah, one would be crazy not to claim it.