Hello:
I'm trying to get a definitive answer on whether or not one can deduct real estate property taxes from rental income accrued from property in a foreign country. I'm unclear if the new tax law still permits said deduction. I find varied answers online, but the IRS link below seems to clearly state that foreign property taxes are not deductible.
If that is the case, then why does Turbo Tax still ask you to enter your property tax? Because when you do, it adds a decent amount to your income tax refund in my case (~$500). Shouldn't Turbo Tax be coded to the latest tax laws?
Thanks for any assistance
https://www.irs.gov/publications/p530
"No deduction for foreign taxes paid for real estate. You can no longer deduct foreign taxes you paid on real estate."
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I completely agree. That said it does not get to my larger question as to why Turbo Tax asks for this information and counts it as a deduction if the new tax law says this should not be the case. My guess is most people using the software don't even think twice about looking that up.
Is there a way to contact Intuit to see if this is indeed a bug in their software that they should rectify? If so, can you point me in that direction.
Thanks
Foreign real property taxes are not deductible as an itemized deduction on schedule A for tax years 2018-2015.
26 IRC section 164(b)(6) and the TCJA page 131. https://www.law.cornell.edu/uscode/text/26/164
Nothing in the TCJA says that foreign property taxes assessed on rental real estate can't be deducted as a rental expense.
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