View Single Post
  #10  
Old 10.02.2010, 10:29
bobbychin bobbychin is offline
Newbie 1st class
 
Join Date: Oct 2007
Location: Zurich
Posts: 24
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
bobbychin has no particular reputation at present
Re: US Tax Liabilities (federal)

Quote:
View Post
You can deduct the rent paid in Switzerland for the US tax return?

You can not only deduct rent, you can also deduct any qualified housing expenses, such as parking, house insurance, utilities, etc. See IRS extract below.

Housing expenses. Housing expenses include your reasonable expenses paid or incurred for housing in a foreign country for you and (if they live with you) for your spouse and dependents.

Consider only housing expenses for the part of the year that you qualify for the foreign earned income exclusion.

Housing expenses include:
  • Rent,
  • The fair rental value of housing provided in kind by your employer,
  • Repairs,
  • Utilities (other than telephone charges),
  • Real and personal property insurance,
  • Nondeductible occupancy taxes,
  • Nonrefundable fees for securing a leasehold,
  • Rental of furniture and accessories, and
  • Residential parking.

Housing expenses do not include:
  • Expenses that are lavish or extravagant under the circumstances,
  • Deductible interest and taxes (including deductible interest and taxes of a tenant-stockholder in a cooperative housing corporation),
  • The cost of buying property, including principal payments on a mortgage,
  • The cost of domestic labor (maids, gardeners, etc.),
  • Pay television subscriptions,
  • Improvements and other expenses that increase the value or appreciably prolong the life of property,
  • Purchased furniture or accessories, or
  • Depreciation or amortization of property or improvements.
Reply With Quote