Minimizing Your Taxes and Managing Your Complex Affairs

Tax Tips, Finance Tips, Fun Events

Tips for Individuals, Businesses and Charities. Fun Events.

Buying Real Estate Outside the US? Your Tax Deduction May Be Limited

Many of you are painfully aware that Tax Reform limits the itemized deduction for state income tax and property taxes to $10,000 in total (combined income and property tax) for tax years 2018 to 2025.

There is an additional property tax limitation for tax years 2018 to 2025 as foreign property taxes are not deductible as an itemized deduction. So taxpayers with second homes or vacation property outside the US should watch out for this trap.

Foreign property taxes on rental properties and business properties (such as foreign office buildings or factories) are still deductible.

For a consultation on how Tax Reform impacts international business, please contact me today.

Richard Pon CPA, CFP