US Tax ramifications of owning a condo unit

[Happyhorn52]

I was just trying to keep the answer simple, but thanks for the enhanced explanation. 

[Old55]

 

Happyhorn52.......Your post was informative, helpful and on topic. Not sure what your reply is in regard to but it's all good thanks for sharing.

 

Edited May 30, 2016 by Old55

[anthonytt]

Well, I put a small deposit P25k on a condo that won't be ready until December 2018. They just broke ground 3 montha ago. I'm only paying P7,000 a month until it's ready. Than get a loan for the balance. So, right now Im unsure if I will proceed with the purchase or just cut my losses and back out. They gave me a TIN number so I'm guessing if I sell it after its built I will have to pay taxes both US and Philippines. I may just rent a condo instead. I just filed my FBAR today. I checked the box amount unknown (let them figure out the amount rather than me make a mistake. I may need to amend my 2015 Federal tax return to include 8938 facta, depending on if I went over threshold or not. Will  find out when FBAR has the total amount. Filed jointly 2015 but with us address, filed FBAR with Philippines address. So I don't know which threshold I need to use. 

[Dave Hounddriver]

7 hours ago, anthonytt said:

Well, I put a small deposit P25k on a condo that won't be ready until December 2018. They just broke ground 3 montha ago. I'm only paying P7,000 a month until it's ready. Than get a loan for the balance. So, right now Im unsure if I will proceed with the purchase or just cut my losses and back out

Its hit and miss with those.  I'd venture a guess that 2 out of 3 go to completion as planned and the third one is like what we have on the boulevard in Dumaguete.  That being a hole in the ground with a lot of rebar sticking out, lots of workers getting paid, no work getting done, and no idea if they will ever proceed or if its just a money pit that looks good while they continue to sell units and then walk away when they have milked it dry.

 

I would definitely go with a condo that is preselling but I would wait until they had too much invested to back out of the construction before taking that risk.  When all they have is a hole in the ground it is extremely risky.  But you only have a few thousand into it so you're good.