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kbrown-1
New Member

I own property outside of the United States. Would I be able to receive a deduction for taxes paid?

monthly tax on property I own. Tax is in Euros; obviously would convert at yearly average rate.
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4 Replies

I own property outside of the United States. Would I be able to receive a deduction for taxes paid?

You can itemize ALL RE taxes paid on all properties you own worldwide on the Sch A. 

I own property outside of the United States. Would I be able to receive a deduction for taxes paid?

Yes, you can deduct all property taxes you paid (on personal property) on schedule A, even overseas property.    However, these taxes are currently subject to the $10,000 cap on all state and local taxes (SALT).  

rjs
Level 15
Level 15

I own property outside of the United States. Would I be able to receive a deduction for taxes paid?

You cannot deduct foreign taxes on real estate.


The IRS Instructions for Schedule A, page A-7, say:


"Don't include the following amounts on line 5b [real estate taxes].
• Foreign taxes you paid on real estate."


IRS Publication 530, "Tax Information for Homeowners," page 4, says:


"You can't deduct foreign taxes you paid on real estate."

 

I own property outside of the United States. Would I be able to receive a deduction for taxes paid?


@rjs wrote:

You cannot deduct foreign taxes on real estate.


The IRS Instructions for Schedule A, page A-7, say:


"Don't include the following amounts on line 5b [real estate taxes].
• Foreign taxes you paid on real estate."


IRS Publication 530, "Tax Information for Homeowners," page 4, says:


"You can't deduct foreign taxes you paid on real estate."

 


OK, yes the law was changed as part of the TCJA, for 2018-2025, foreign real property taxes are not deductible.  (They were deductible before 2018 and will be deductible in 2026 unless Congress changes the law again.)

https://www.law.cornell.edu/uscode/text/26/164

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