The Real Halloween
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12-07-2019
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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
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12-07-2019
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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
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12-07-2019
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A foreign rental is no different than a US rental. Income - taxes, insurance, property taxes, license, repair, .... depreciation.
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The Real Halloween
Level 7
12-07-2019
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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.
The Real Halloween
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12-07-2019
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@George4Tacks @itonewbie Thanks!
itonewbie
Level 15
12-07-2019
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NP, @The Real Halloween!
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