Foreign Real Estate Taxes

US expats can claim many of the same itemized deductions on their US expatriate tax returns as back home. If you own a home overseas, you may qualify for the foreign real estate tax deduction on your foreign house.

Can I deduct the real estate tax I pay on my home overseas?

Yes. If you itemize your deductions as an American living overseas, you can deduct foreign real estate taxes imposed by you by a foreign country. Unfortunately, you cannot take deduction for personal property taxes unless these taxes are incurred in a trade or business or in the production of income.

Can I deduct foreign income taxes I paid overseas?

Yes. If you itemize your deductions as an expat, you can take deduction for foreign income taxes imposed on you by a foreign country or a United States possession. You can elect to take a deduction rather than take a credit on foreign income tax.

Caution! In most cases, it is more beneficial to take the foreign tax credit. It is always advisable to have an international tax expert calculate the best option for you. You cannot take the foreign income tax deduction or credit on taxes paid on income that you exclude under the Foreign Earned Income Exclusion, Foreign Housing Exclusion or Possession Exclusion. 

Casualty, Disaster and Theft Losses

Charitable Donations

Foreign Mortgage Interest Deduction

Medical Deductions