# Form 8854 jointly owned assets



## Pliskers (Jan 20, 2021)

When completing the net worth calculation to determine if covered expat or not, how do you handle jointly owned houses i.e. house owned equally between me and wife? As we have to file separately, do we take value of house and divide by 2 for each filing or do we both show full value on each form?


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## Bevdeforges (Nov 16, 2007)

Are you both US taxpayers (or renunciants) ? If you are, I'd split the assets and each take one half. If you've been filing jointly because one spouse is an NRA, then I'd just use the half value of joint assets for the person who has to file the 8854. They really don't seem to check these forms all that closely in any event as far as anyone can tell.


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## Pliskers (Jan 20, 2021)

Bevdeforges said:


> Are you both US taxpayers (or renunciants) ? If you are, I'd split the assets and each take one half. If you've been filing jointly because one spouse is an NRA, then I'd just use the half value of joint assets for the person who has to file the 8854. They really don't seem to check these forms all that closely in any event as far as anyone can tell.


Both were green card holders for last 14 years before handing in via i407 in April last year. Doing 8854 for first time so going through the covered expat triggers etc.


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## melcher (5 mo ago)

Bevdeforges said:


> Are you both US taxpayers (or renunciants) ? If you are, I'd split the assets and each take one half. If you've been filing jointly because one spouse is an NRA, then I'd just use the half value of joint assets for the person who has to file the 8854. They really don't seem to check these forms all that closely in any event as far as anyone can tell.


What about the situation where I am a renouncing US citizen and my wife is not a US citizen and does not file US income tax returns? We own our house together, so do I still declare my half of the proceeds from the deemed sale of the house on form 8854?


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## Harry Moles (11 mo ago)

If you don't have US assets or income sources at risk, honestly it's a better move to ignore tax compliance after renouncing. According to the IRS, 40 percent of those who renounce do not file Form 8854, and they do not have the resources to follow up. (I renounced this year without past tax compliance and have no intention of filing anything, and no concerns.)

If you've been filing US tax returns all along then there's probably no harm in doing Form 8854, as long as you don't owe any money. Pretty clearly the IRS does not have the time or interest in taking a careful look at this paperwork, so choose your numbers to ensure that you're not subject to any exit tax.


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