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If I am residing in the US but I purchase a secondary vacant property (residence) abroad (India) for my own personal use (not for rent), and pay the property tax to the Govt of India, then do I still have to report it when filing US taxes?

If yes, what forms and what documentation should be provided?

Appreciate your inputs.

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    Report in what sense?
    – littleadv
    Commented Feb 27, 2016 at 6:16
  • Report in the sense of reporting its presence somewhere (some form?) when filing federal income tax. I don't get any income out of it though. But just like with the FinCEN with accounts even less than $10k that have to be reported (even if no tax has to be paid), I thought we may have to report the mere presence of the property somehow. Does that answer your question?
    – Buggy Squashy
    Commented Feb 28, 2016 at 5:33

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The pure existance and ownership of the real estate doesn't matter to the IRS.

What you have to report is

  1. any income from it (rental or otherwise); and
  2. a potential gain from selling it in the future, for that you need to keep documentation on the base = purchase price and all cost you have with it during the time you owe it (that includes the property taxes paid in India, and all repairs, etc.)
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