# Does USA tax expat rental income in France?



## kroder

Greetings everyone,

For Americans living permanently in France and still obligated to file taxes in the US every year, how is rental property income taxed by Uncle Sam? Usually we're allowed to exclude 100K or so of earned income every year, but is rental income treated differently? 

Thanks for your input.

Kind regards


----------



## Bevdeforges

Rental income is not considered "earned income" and so is not excluded from income using the FEIE. You will have to declare it on both your US and French filings - and if you wind up paying income taxes on the income in France, that then becomes deductible from your US tax obligation using the Foreign Tax Credit (form 1116). 

Just be aware that for rental property the deductible items may be somewhat different on the French forms than on the US forms so the income may not be the same. Check the tax treaty - there is something in there about how you may be able to declare the rental income "net" - i.e. without having to detail the expenses and all. Don't forget to include your foreign rental income on form 2047 - but there are a couple of categories (to avoid double taxation. I don't have any experience here with which applies to US rentals so you may have to ask your tax preparer or your friendly local tax office.


----------

