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Level 1
posted Oct 30, 2024 1:51:49 PM

2 country question concerning new home build

Probably a bonkers question but we now split time between the US and another country where I am building a home. We moved and began the build in April 2024 (although we plan to fly back to the US once every 180 days) ... are there any tax pitfalls to imagine in this case? Or perhaps ant move related or new build advantages?

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1 Replies
Employee Tax Expert
Oct 30, 2024 5:45:09 PM

Congratulations on building a home in foreign country. That sounds exciting!

 

Here are some considerations:

 

  • US citizens or residents living outside of the United States are generally required to file Federal income tax returns and pay taxes the same as if they lived in the US.  State tax filing requirements are based on the state you lived in before moving abroad.

 

  • Real estate taxes paid in a foreign country can not be deducted as an itemized deduction on Schedule A, Form 1040.

 

  • If you are collecting social security benefits, you can live in most foreign countries and still receive payments.  You can make sure you are still eligible  using the Payments abroad screening tool provided by the Social Security Administration.

 

IRS Publication 54, Tax Guide for US Citizens and Resident Aliens abroad will provide you with a lot of helpful information. 

 

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