Bank accounts, property and income back home: what to report in the US
You moved, but back home you still have an apartment you rent out, a bank deposit or a share in a business. Many people assume that money "over there" is none of the US's business. It is: a US tax resident reports worldwide income.
What income to report
- rent from an apartment or house, with expenses and depreciation, just like US property;
- interest on deposits and dividends;
- salary or fees if you still work for a foreign employer;
- gains from selling an apartment, a car or shares.
Amounts are converted to dollars. For income during the year, the rate on the day received or the yearly average is usually used; for buying and selling property, the rate on the date of each transaction.
Selling an apartment
The gain is figured in dollars: the sale price at the rate on the sale date minus the purchase price at the rate on the purchase date. Because of exchange rates, the dollar gain can be very different from the gain in local currency, in either direction.
If the apartment was your main home for two of the last five years, the same break as for a US home may apply: up to $250,000 of gain tax-free, or up to $500,000 for a married couple.
Avoiding double tax
If tax on that income was already paid abroad, it can usually be credited through the foreign tax credit (Form 1116). Your US tax goes down by the foreign tax, up to the US tax on that income. Many countries also have a tax treaty with the US that decides which country taxes which kind of income.
Account reports are separate from tax
Even with no income, there are asset reports:
- FBAR — if your foreign accounts together topped $10,000 at any time in the year. More in the separate post.
- Form 8938 — for people living in the US: if foreign financial assets are over $50,000 on December 31 or over $75,000 at any time in the year. For a married couple filing jointly, $100,000 and $150,000.
An apartment you own directly isn't reported on the FBAR or Form 8938, only the income from it. If the property is held through a foreign company, the company itself has to be reported.
A share in a foreign company
If you own part of a company abroad, separate forms such as Form 5471 may be required. Penalties for missing them start at $10,000 per form, even when no tax is due. It's one of the most expensive mistakes people make after moving.
What to gather
- foreign account statements with the highest balance for the year;
- leases and expenses for the property;
- purchase and sale documents with dates;
- proof of tax paid abroad;
- documents for any company shares.
If you haven't reported foreign income or accounts for several years, there are programs to fix it with smaller penalties. It's better to start before the IRS writes first. I'll look at your situation.
Sources: IRS: Comparison of Form 8938 and FBAR requirements, IRS: Form 1116, Publication 523, IRS: Form 5471. Checked October 26, 2026.