We bought a retirement home in Mexico in 2016. Can we deduct closing or taxes on it?

info24 — Tue, 04 Jun 2019 20:46:47 GMT

We did not have a mortgage for this RE purchase, but did have closing costs, taxes, etc. Is any of this deductible in the US on our taxes?

You can claim foreign property tax (you must convert it t...

MargaretL — Tue, 04 Jun 2019 20:46:49 GMT

You can claim foreign property tax (you must convert it to the U.S. dollars) on the property that you own, as an itemized deduction.

You cannot deduct closing costs, they are added to the cost of the home (in your own records) reducing you potential profit when you sell the home.