# Deducting Property Tax



## mmlefleur (May 13, 2020)

Since foreign tax on real estate can't be deducted as an itemized deduction any longer, has anyone deducted it on Form 2555?


----------



## Bevdeforges (Nov 16, 2007)

No - there is no provision on form 2555 for deductions. You simply exclude up to the limit of your foreign "earned income" (i.e. salary).


----------



## mmlefleur (May 13, 2020)

I meant as a part of the housing exclusion. Maybe my terminology isn't correct.


----------



## Moulard (Feb 3, 2017)

Form 2555 is more commonly used to exclude foreign earned income hence the confusion I suspect.

To cut a long story short, No. Not really aimed at supporting homeowners, just renters.

You cannot claim the cost of buying or improving a house, principal payments on a mortgage. Nor can you claim any interest or taxes including those on real property.

But you could include utilities (apart from telephone charges) real and property insurance, rental of furniture and other household accessories, residential parking - so long as they are all "reasonable".

That said, for 2019 those expenses would have to exceed close to 17k USD for there to be any benefit.


----------

