Do US citizens with dual citizenship need to report foreign property on US taxes?

Yes, as a US citizen, you're required to report worldwide income and certain foreign assets regardless of whether you have dual citizenship. For the property itself, if it doesn't generate income, you don't need to report it on your regular tax return. However, you may need to file additional forms. If the property value exceeds $50,000, you likely need to file Form 8938 (Statement of Specified Foreign Financial Assets) with your tax return. Additionally, if you have foreign financial accounts (bank accounts in Colombia) with an aggregate value exceeding $10,000 at any time during the year, you need to file an FBAR (FinCEN Form 114) electronically through the BSA filing system. The fact that the property is registered under your Colombian citizenship doesn't exempt you from these reporting requirements to the US. The IRS looks at your US citizenship status, not how assets are titled in foreign countries.

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I need to eat my words. After posting my skeptical comment yesterday, I decided to try Claimyr as a last resort. I'd been trying to reach the IRS for literal MONTHS about my unreported property in Greece. This thing actually worked! Got a call back in 22 minutes with a real IRS agent on the line. The agent walked me through Form 8938 requirements and explained their voluntary disclosure program for catching up on past filings. She even gave me the direct extension for the international tax department for follow-up questions. Was absolutely certain this would be a waste of money but ended up saving me days of frustration. Now I have clear direction on fixing my unreported property issues before they become a bigger problem. Never been so happy to be wrong!

One important distinction most people miss: Form 8938 (FATCA) is for foreign "financial" assets. Real estate held directly (not through a foreign entity) typically isn't reportable on Form 8938. However, if you have foreign bank accounts associated with the property (for paying utilities, collecting rent, etc.) those accounts might need FBAR reporting if over $10k. And if the property is owned through a foreign corporation or partnership, different rules apply.

I'm worried now - I have a small apartment in Beijing (worth about $120k) that I inherited from my grandfather last year and haven't reported anything. Am I going to get hit with huge penalties???

For your specific situation with the Colombian property, since it's worth $85,000 and doesn't generate income, you likely don't need to report the property itself on any forms. Real estate held directly isn't typically a "specified foreign financial asset" for Form 8938 purposes. However, the key question is whether you have any Colombian bank accounts associated with the property - for paying property taxes, utilities, maintenance, etc. If you have Colombian bank accounts and the total value of ALL your foreign accounts exceeded $10,000 at any point during the year, you'd need to file FBAR. Since you inherited it 5 years ago, I'd recommend looking into the Streamlined Filing Compliance Procedures if you discover you missed any required filings. The fact that you genuinely didn't know about the requirements works in your favor - this is considered "non-willful" non-compliance, which has much lighter penalties than willful violations. Don't stress too much, but definitely get clarity on your specific situation soon!

Giovanni, you're definitely not alone in this confusion! The good news is that for your specific situation, you're probably not in as much trouble as you think. Since your Colombian property is worth $85k, doesn't generate income, and is held directly in your name (not through a foreign entity), the property itself likely doesn't need to be reported on Form 8938 or any other form. The main thing to check is whether you have any Colombian bank accounts - even small ones for paying property taxes or utilities. If you do, and if the total balance of ALL your foreign accounts combined ever exceeded $10,000 in any year, then you'd need to file FBAR forms for those years. If you discover you missed required FBAR filings, definitely look into the Streamlined Filing Compliance Procedures. Since you genuinely didn't know about these requirements (non-willful non-compliance), the penalties are much more reasonable than if the IRS thought you were intentionally hiding assets. I'd recommend getting a consultation with a tax professional who specializes in international issues just to be 100% certain about your specific situation. Better to spend a few hundred on professional advice now than potentially face penalties later!