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How do I account for Non Resident Taxes in Belgium for owning a rental

This is a complicated one. I own a house in Belgium which I rent. Recently, Belgium has started taxing non-residents, regardless of the income they make, by taxing the potential rental income. I was planning to just deduct the taxes as expenses from the rental income I declare in the US but Turbotax suggested I may be able to credit the taxes paid by filling out form 1116. The taxes are calculated based on property value. They are NOT property taxes. What should I do? Form 1116? What income and expenses should I use for the income. The same as the expenses used in the rental income form? Should I just forget about form 1116? Turbotax does not seem to account for my case.

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1 Reply
pk
Level 15
Level 15

How do I account for Non Resident Taxes in Belgium for owning a rental

@Nordine011 , assuming that you are a US person ( citizen/GreenCard /Resident for Tax Purposes ),  and since the taxes being levied by Belgium is based on value and not on rental. income,  it is not in  the character  of income tax.   Thus I would conclude that  this tax is a tax on the property ( additional? ) and therefore  put in as an expense under taxes . licenses, permits  etc. on Schedule-E.

 

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