Deduct tax on foreign property investment

[Anonymous]

In 2021 I purchased foreign property as an investment. The tax laws in the foreign country also required me to pay a "real estate purchase tax", a sales tax of sorts I guess. Is this something that I can deduct on my tax return? Does it fall under the state and local limit of $10k? (if that is the case, I'm still better off with the standard deduction).

[HelenC12]

No, you can't deduct the "real estate purchase tax" if it's a sales tax. The IRS code allows a deduction for U.S. states (and local sales tax).

If the tax is property tax, no, foreign property (real estate) taxes aren't deductible in tax year 2018 through 2025 due to the Tax Cuts and Jobs Act. In 2017 and prior years, foreign property taxes could be deducted.

[Anonymous]

Thank you.

Is this also the case for California taxes?

[DaveF1006]

@Anonymous California still does not allow deductions for state, local, foreign, sales and use taxes.