Foreign Owned Property (Mexico)

[rogges99]

What expenses can be deducted for a property we purchased in Mexico in 2024?  We paid for the property in cash and have one-time expenses and ongoing monthly expenses.  We rent the property on Airbnb and VRBO.  

[RobertB4444]

You're going to enter the Mexico property into TurboTax as a rental property just as if it were here in the US.  

All of your rental income is reported as well as any necessary and ordinary expenses required in order to rent the property out.  Those expenses include regular maintenance, taxes, mortgage interest, utilities, etc.  TurboTax will list out all of the categories for you and you can read thru them to see if you have any of those.

@rogges99 

[rogges99]

What about the purchase price/closing costs that were paid to purchase the property (there is no mortgage)?

[RobertB4444]

Those costs are part of your 'basis' in the property.  You will enter that information into the 'Assets and Depreciation' section of the rental property in TurboTax.  Residential rental real estate is depreciated over the course of 27 and a half years so a portion of the value of your property will be deducted every year as you rent it.

@rogges99