Can I get a tax deduction (in USA) on real estate in a different country? Mortgage is obviously from the foreign country itself. Update : This link says we can - https://www.investopedia.com/articles/personal-finance/022415/do-you-get-us-tax-deductions-real-estate-abroad.asp#:~:text=Can%20I%20Deduct%20Mortgage%20Interest,your%20first%20or%20second%20home #cpa #tax #irs Blind tax : TC : 280k (not at eBay anymore)
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How can my idiot brother who does real estate afford this
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Get a good tax advisor. I use a company which has legal and accounting advisor for my Estate setup incl real estate (here and India).
I plan to get myself a tax advisor. But I wanted to know if its possible to get a tax deduction? My portfolio is not complex enough to have a dedicated CPA otherwise. I just use paid H&R block.
@rafa23 - the answer is it depends on specifics. In certain circumstances you can and in others you can’t.
No
No. I can’t even get a tax break on land that I own in Puerto Rico - and it’s a US territory.
You can if you are earning an income from it such as rental. You could then offset expenses, Mortgage interest and repairs.
Hell no
I just looked up the tax code on the IRS website. You can deduct mortgage interest if it’s less than the standard deduction. You can’t deduct foreign property taxes. If you want to deduct rental property expenses, you need to report the rent as income on your taxes and it requires a ton of paperwork.
That was my understanding too. Given that it is a reasonable expectation, I will book a consultation with a CPA to take the next steps then!
Your understanding is wrong. To deduct mortgage interest, you need to itemize, which means you take itemized deductions in lieu of the standard deduction. Since TCJA placed a 10K cap on SALT, you'd need to have SALT of at least 10K, plus at least 3K in deductions for this to be worthwhile for you. Additionally, if you are a US citizen, you must report all income regardless of source. But reporting that rental income isn't a "ton of paperwork", and it is considered passive income, not ordinary income. Since you get to depreciate the property for 27.5 years, likely this doesn't increase your taxable liability, and can potentially even offset gains from other profitable passive income streams.
lol
No