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House Owned Overseas As A Corporation

Hi,

My wife and I purchased a retirement home in Costa Rica as a corporation (common here to reduce taxes). The house is worth more than $400K. It is only a house - we do not derive any income from it nor do any business from it. I believe we need to file an 8938 and a 5471. Is that correct? I tried fill out a 5471 and it was a nightmare. Do we really need the 5471 and, if so, do we really need all that information? All I want to say is this is our home, it cost this much when we bought it a year and a half ago and its value hasn't changed much.

Thanks, Gary

Reply to
Gary
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I am going to assume that you and/or your wife own at least 10% of the stock (probably 100%) of a foreign corporation that was formed to own the real property. As such, I know of no exception to the filing requirements for Form 5471. If you have no other foreign financial accounts, you do not have to file Form 8938.

You are a category 2 filer. As such you only have to complete Schedule A and G of the 5471 and Part I of Form 5471 Schedule O (a separate form). See the instructions for the 5471 for completing Schedule A. Part I of Schedule O

Reply to
Alan

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