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2018 Taxes - Which form to declare foreign mortgage

2018 Taxes - Which form to declare foreign mortgage

Old Apr 15th 2019, 12:46 am
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Default 2018 Taxes - Which form to declare foreign mortgage

Hi, if i have a mortgage in the UK, which form do i use to declare ? 8938? or something else? i have completed everything else apart from this section, last minute panic !!
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Old Apr 15th 2019, 12:49 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

If you're in a panic you can file for an extension.
Do you have a UK mortgage? You say 'if'.

Anyway, there's not a special section for a foreign mortgage, just put the interest in the regular section.

Do you live there part year? I think there's a residency requirement. 14 days or something...

Last edited by Hotscot; Apr 15th 2019 at 1:06 am.
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Old Apr 15th 2019, 1:06 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Why does it need to be declared at all? 8938 is for foreign assets, which a mortgage isn't.
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Old Apr 15th 2019, 1:07 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

In some circumstances you can deduct the interest just as you would in the US.
The IRS doesn't care that it's foreign.
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Old Apr 15th 2019, 1:07 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by Mercury39 View Post
Why does it need to be declared at all? 8938 is for foreign assets, which a mortgage isn't.
hmm true, but the house is a foreign asset, or not?

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Old Apr 15th 2019, 1:08 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by Hotscot View Post
If you're in a panic you can file for an extension.
Do you have a UK mortgage? You say 'if'.

Anyway, there's not a special section for a foreign mortgage, just put the interest in the regular section.

Do you live there part year? I think there's a residency requirement. 14 days or something...
Yes i do have UK Mortgage
I was in USA the whole of 2018

I'm using TurboTax and have entered interest payments already.
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Old Apr 15th 2019, 1:09 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by UKtoCT View Post
hmm true, but the house is a foreign asset, or not?
Foreign real estate is not reportable on 8938, ie you don't report it.
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Old Apr 15th 2019, 1:10 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by UKtoCT View Post
Yes i do have UK Mortgage
I was in USA the whole of 2018

I'm using TurboTax and have entered interest payments already.
Did you rent out the UK property?
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Old Apr 15th 2019, 1:12 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by Mercury39 View Post

Foreign real estate is not reportable on 8938, ie you don't report it.
https://www.greenbacktaxservices.com...bar-form-8938/ this also states the same under "Foreign real estate held directly"

Originally Posted by Mercury39 View Post

Did you rent out the UK property?
Nope
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Old Apr 15th 2019, 1:18 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

If you go to the deductions section, where you entered mortgage interest on your US property, you'll see a button to add a lender. If Turbo Tax.
This can be a foreign property with a foreign lender.
It's like having a holiday home not a foreign asset.
However you must have lived in it for 14 days that year I think.
No scratch that...I think that's only if you rent it.
It's sitting empty?

Last edited by Hotscot; Apr 15th 2019 at 1:22 am.
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Old Apr 15th 2019, 1:19 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by Hotscot View Post
If you go to the deductions section, where you entered mortgage interest on your US property, you'll see a button to add a lender. If Turbo Tax.
This can be a foreign property with a foreign lender
ah ha, great!

thank you both for the swift responses
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Old Apr 15th 2019, 1:23 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by UKtoCT View Post
https://www.greenbacktaxservices.com...bar-form-8938/ this also states the same under "Foreign real estate held directly"
From IRS website
Does foreign real estate need to be reported on Form 8938?
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.
--You would only need to report it if it was held in a corporation, partnership, trust or estate, and in which case you would be reporting that entity not the actual property.

As Hotscot mentioned, "you can deduct the interest just as you would in the US." (thanks for that, I hadn't realized that). If you provided the details of the interest payments then it will be included in your itemized deductions (assuming you are doing itemized deductions vs the standard deductions - but TurtoTax will work that out for you)
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Old Apr 15th 2019, 1:24 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by Hotscot View Post
If any family are living in it there could be issues...
you've got my attention..
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Old Apr 15th 2019, 1:26 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Please note.
The standard deduction has been increased this year.
Turbo Tax may use that to provide the largest deduction, and just ignore your mortgage interest.
If, when entering your mortgage interest the numbers don't move, that's probably the case.
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Old Apr 15th 2019, 1:31 am
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Default Re: 2018 Taxes - Which form to declare foreign mortgage

Originally Posted by UKtoCT View Post
you've got my attention..
Nah....I'm overthinking.

Just interest and insurance? If so good to go.
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