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Foreign Real Estate Tax Planner

Full dual-country tax analysis for purchasing, renting out, and selling foreign property as a US person. Schedule E, FTC, depreciation, and disposal CGT.

Property Details

Property Value (USD)

Purchase Price (USD)

Monthly Rental Income (USD)

Annual Expenses (USD)

Years Held

Host Country

Foreign Tax on Rental (%)

Foreign CGT Rate (%)

Your US Marginal Rate (%)

Appreciation Rate (%/yr)

Analysis Phase

📊 Rental Income

💰 Sale / Disposal

📋 Combined Lifetime

Key Rules for US Owners of Foreign Property

40-Year Depreciation: Foreign residential property uses ADS straight-line over 40 years (vs 27.5 years domestic). Annual depreciation = purchase price × allocation to building ÷ 40.

FTC on Foreign Tax: Foreign property taxes paid can generally be claimed as a Foreign Tax Credit (Form 1116, passive category). This offsets US tax dollar-for-dollar up to your US tax on the foreign income.

FIRPTA in Reverse: When a foreigner sells US property, FIRPTA withholding applies. When a US person sells foreign property, the host country often withholds tax — claim FTC to avoid double taxation.

§121 Exclusion: The $250k/$500k primary residence exclusion does NOT apply to property you rent out abroad unless you also lived in it 2 of the last 5 years. Converting a foreign home to rental starts the clock.