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

[info24]

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?

[MargaretL · Accepted solution]

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.

1. Federal Taxes
2. Deductions & Credits
3. Your Home
4. Property Taxes - enter the amount in Other Property field  

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.