The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: purchase foreign property, send money legall||Date: 5/19/2013 11:08 AM|
|Author: TMFPMarti||Number: 118613 of 120410|
My question is: can I simply write a personal check with say, $150,000 USD for the down payment from my checking account?
Probably not, but it has nothing to do with tax law. Rather, I think transfer of funds out of the country is more complicated than that. When I was administering an estate that had foreign legatees we had to do conversions to checks issued in the foreign currency. At the amount you mention I think there is also some reporting to Treasury about the movement of funds. In any event, your banker can advise you on process and required reporting.
As for the tax law end, make sure you keep a record of the USD amount you paid for the property. You'll need that should you sell sometime down the road. There are no special restrictions on mortgage interest and real estate taxes just because the property is out of the US. You just need to do currency conversions.
Rule Your Retirement Home Fool
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|