Foreign (Non U.S.) Rental Property


If you own a house in your native country that you rent out your U.S. filing requirements are much the same as a U.S. person living abroad.

Foreign Rental Property

Renting out property you own outside of the U.S. still must be reported to the IRS on your yearly U.S. tax return (as long as you are considered a U.S. person for tax purposes by the IRS).  Income and expenses must be reported in U.S. dollars, and depreciation must be taken on the assets.  You are also most likely required to report the rental to the tax agency of the country the property is located in.  If there are any taxes owing in the foreign country, they can be used to offset any taxes calculated in the United States.

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Any tax advice herein is based on the facts provided to us and on our interpretation of tax legislation as it reads at the time the advice is provided. Tax law is subject to continual change, at times on a retroactive basis and may result in incremental taxes, interest or penalties. We are not responsible for updating our advice for changes in law or interpretation after the date the advice is provided. Every tax situation is different. We are not responsible for the tax implications to any individual or entity that may act on this advice.