turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Foreign Real Estate Taxes

My wife is a Spanish Citizen but resident alien in the US.  She owns an apartment in Spain and pays real estate taxes each year.  In addition to the regular real estate taxes, non-residents of Spain also are hit with a 24% tax on rental income if they are not living in Spain while renting out the apartment.  Can that additional real estate tax levied upon the apartment also be entered as real estate tax in Turbo Tax?  If so, just add it to the foreign property real estate tax box?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
DC-taxpayer
Returning Member

Foreign Real Estate Taxes

I am sorry to say that as of 2018, you no longer can deduct foreign real estate taxes. This was part of the tax bill passed by Congress. See this link for more information: 

https://www.irs.gov/publications/p530

Foreign Real Estate Taxes

Thanks for the response.  I agree, that link appears to state the foreign real estate taxes are no longer deductible, but that begs the question as to why Turbo Tax still inquires about real estate property taxes paid on a foreign rental property.  I'm assuming Turbo Tax has incorporated said new tax rules into the program.  

pk
Level 15
Level 15

Foreign Real Estate Taxes

@Panthermonium  the answer is wrong.  The TCJA limits property tax deduction for "home / second home" owned abroad.  For rental property  abroad  this rule does NOT apply.  You report all expenses including taxes , mortgage interest, etc. etc. on schedule-E just as if the property was situated on US soil.  The only difference is that the  depreciation  is over 39.5 years   ( like commercial property on US soil ) in lieu of 27.5 yrs.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question