Question

VAT tax as an itemized deduction

Forum|Forum|1 year ago
February 16, 2025
1 reply
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As a foreign rental property owner I pay significant VAT and other special taxes (e.g. service tax) on expenses not directly related to my rental property...15% to 23% of the purchase. Where do I enter these taxes to deduct them on my personal return as this is not a US registered business?

SusanY1

Foreign VAT is not deductible on your personal income tax return as an itemized deduction.

Also, remember that your foreign rental income should be included on your US tax return if you are a citizen or resident, as all worldwide income should be included. How this is reported can vary based on the facts and circumstances, but it is most often reported on Schedule E.

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R

r2frameAuthor

I've always reported the rental income and expenses. I also see that the foregn property tax can no longer be reported as a foreign tax . But it can still be included in the operating expenses