rental properties abroad

[Anonymous]

we are thinking about buying a property abroad (in the EU) that we would use during summer but rent through the rest of the year. would that count as a rental property and would taxes be the same as if the property was in the US?

[Anonymous]

I would think it would count towards your income here in the US (since you will still primarily live in the US) and you might have some tax implication of the country the home is in.

[Anonymous]

If you are a US tax resident, your worldwide income is taxable by the IRS. However, any foreign earned income would be subject to deductions for any taxes paid to the jurisdiction where the income was earned. You should also consider that thanks to FBAR requirements, most foreign banks will not grant bank accounts to US citizens or tax residents. So you will likely need to figure out a way to collect payments, pay maintenance costs, etc from a US-based bank. Before you undertake this, you should understand the bureaucratic burdens and be willing to accept them.