It is my understanding that TCJA disallows foreign real estate taxes paid (IRC164).  But can you take deduction on foreign real estate taxes paid on schedule E as TP is renting out his foreign apartment overseas?  Thanks for your help.

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itonewbie
Level 15

George is correct.  What you referred to is §164(b)(6)(A).  Deductions for rental expenses, such as real estate taxes, regardless of whether it's domestic or foreign, are governed by §212.

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George4Tacks
Level 15

A foreign rental is no different than a US rental. Income - taxes, insurance, property taxes, license, repair, .... depreciation. 


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@George4Tacks It is my understanding that TCJA denies foreign real estate taxes paid as an itemized deduction, it seems that this should also rule Schedule E.  But I am unsure whether TCJA's denial only applicable to itemized deduction or it also includes Sch E deduction.  Thanks for your help.
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itonewbie
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NP, @The Real Halloween!
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