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The short answer
A plot or house you own in your own name in Nigeria is not reported on FBAR or Form 8938: the IRS says personally held foreign real estate is not a specified foreign financial asset, and FBAR covers only financial accounts. The land enters your US return when something happens to it: rent (Schedule E), a sale (Form 8949 and Schedule D), a gift (Form 709 above the annual exclusion), or ownership through a Nigerian company or trust, which is reportable.
The short rule: owning land is not, by itself, reportable
Many Nigerians in the US hold land at home: a plot in Ibeju-Lekki, a family house in Enugu, a half-built bungalow in Abuja. A common worry is that every one of these must be declared to the IRS each year. For land held directly, in your own name, that is not the case.
- The IRS's Form 8938 questions and answers (reviewed August 2026) list personally held foreign real estate among the assets that are not reportable. Its comparison page also says foreign real estate held directly is not a specified foreign financial asset.
- FBAR (FinCEN Form 114) covers accounts at financial institutions outside the US: bank, brokerage and similar accounts. A title document for land is not an account, so the land is not on the FBAR. The IRS's FBAR page (July 2026) frames the test entirely around accounts.
- There is no annual US form that lists foreign land you simply own.
So the question is not whether you own land, but what the land does during the year. Five events bring it onto US forms.
When the land shows up on your return
| Event | Where it appears | What drives it |
|---|---|---|
| You let the property out | Schedule E (rent, expenses, depreciation) | Worldwide income rule for citizens and residents |
| You sell it | Form 8949 and Schedule D | Capital gain or loss worked out in US dollars |
| You give it away | Form 709, if the value given to one person in the year exceeds the annual exclusion | US gift tax rules |
| You hold it through a Nigerian company, partnership or trust | Form 8938 (interest in a foreign entity) and possibly other entity forms | The entity, not the land, is the asset |
| Rent or sale money sits in a Nigerian bank account | FBAR and possibly Form 8938 | The account, not the land |
Rent
IRS Publication 527 (2025) covers residential rental property, and it applies to a Lagos flat the same way it applies to one in Atlanta: rent is income, and you deduct expenses and depreciation. The building is depreciated; the land underneath is not. Publication 527 lists the 30-year recovery table that applies to residential rental property under the alternative depreciation system, with a 40-year footnote for property placed in service before 2018. Our guide to reporting Lagos rent on Schedule E walks through the lines.
Sale
IRS Topic 409 treats land held for investment as a capital asset, reported on Form 8949 and then Schedule D, long-term if held more than one year. The gain is computed in dollars, so the exchange rate at purchase and at sale both matter; see US tax when you sell land in Nigeria.
Gift
If you give land to a relative, the IRS gift tax FAQ (July 2026) sets the 2026 annual exclusion at US$19,000 per recipient. Land is usually worth more than that, so a Form 709 is normally due, although tax is rarely payable because of the lifetime exclusion. The detail is in gifting land in Nigeria to a sibling.
When the structure changes the answer
The IRS Form 8938 Q&A draws a clear line: land you own personally is outside the form, but an interest in a foreign entity that owns land is a specified foreign financial asset. So if your property sits inside a Nigerian limited company, an estate you are a beneficiary of, or a family trust, the interest in that vehicle may need to go on Form 8938 once your total foreign assets pass the threshold. The comparison page (September 2026) gives the thresholds for a single filer living in the US as more than US$50,000 on the last day of the year or more than US$75,000 at any time, and US$100,000 and US$150,000 for a married couple filing jointly.
Owning 10% or more of a Nigerian company can bring further corporate reporting; see reporting triggers for a Nigerian company stake. Land held under customary family ownership, where no one person holds title, is harder to classify; record who holds what and ask a preparer before assuming either answer.
A worked example
Example only; figures are invented. Chidi lives in Houston and owns two Nigerian properties. A plot in Asaba, bought in his own name, is vacant. A two-bedroom flat in Yaba is let, with rent paid into his Nigerian bank account.
- Asaba plot: nothing to report this year. Not on FBAR, not on Form 8938, no Schedule E.
- Yaba flat: rent and expenses go on Schedule E, converted to dollars.
- Nigerian bank account: if its balance, together with his other foreign accounts, went above US$10,000 at any point in the year, he files an FBAR. That is about the account, not the flat.
- If he sells the Asaba plot next year, it appears on Form 8949 for that year only.
What to check first
- List each Nigerian property and how it is held: your name, joint names, company, family or estate.
- Note for each whether it earned rent, was sold or was given away this year.
- Check which Nigerian bank accounts received rent or sale money, and their highest balance.
- Keep purchase documents, receipts and the exchange rate you used, because the dollar cost basis matters when you eventually sell.
- If anything is held through an entity or estate, have a preparer look at Form 8938 and entity forms.
Where Pryme fits
The reporting usually turns on the money, not the land. Keeping rent and property costs in one naira account in your name, separate from family spending, gives you a clean record for Schedule E and a clear figure for the FBAR test. A Pryme account can be opened from the US and holds NGN alongside USD (multicurrency account), and statements can be issued as verifiable documents through VerifyDoc.ai (receipts and statements).
Questions people ask
Do I have to report land I own in Nigeria to the IRS?
Not if you hold it directly and it did nothing during the year. The IRS says personally held foreign real estate is not reportable on Form 8938, and FBAR covers only financial accounts.
Is a Nigerian property reportable on FBAR?
No. FBAR is for accounts at financial institutions outside the US. The bank account that receives your rent may be reportable.
When do I report Nigerian land on my US tax return?
When it earns rent (Schedule E), is sold (Form 8949 and Schedule D), is given away above the annual exclusion (Form 709), or is held through a company, trust or estate.
What if my Nigerian house is owned by my company?
Then your interest in the company may be a specified foreign financial asset for Form 8938, and other company reporting may apply. Ask a preparer.
Sources
- IRS: Basic questions and answers on Form 8938 (reviewed 17 Aug 2026) · accessed Oct 2026
- IRS: Comparison of Form 8938 and FBAR requirements (reviewed 19 Sep 2026) · accessed Oct 2026
- IRS: Report of Foreign Bank and Financial Accounts (FBAR) (reviewed 30 Jul 2026) · accessed Oct 2026
- IRS Publication 527 (2025), Residential rental property · accessed Oct 2026
- IRS Topic no. 409, Capital gains and losses (reviewed 24 Sep 2026) · accessed Oct 2026
- IRS: Frequently asked questions on gift taxes (reviewed 23 Jul 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.