Discussion:Foreign wealth tax deductible on sch A?

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Discussion Forum Index --> Advanced Tax Questions --> Foreign wealth tax deductible on sch A?

Discussion Forum Index --> Tax Questions --> Foreign wealth tax deductible on sch A?

Jwebbb (talk|edits) said:

2 May 2014
We have a client (US citizen) who has just had to pay a tax on the value of his worldwide assets to country of Spain, where he is a resident. The bill included the last 3

tax years and was for $40,000. I know this cannot be claimed as a foreign tax credit on US tax return because it is not based on income, but can he take a deduction on his schedule A for the year of payment? It can be akin to Florida intangible property tax; or even real estate taxes or personal property tax, however these assets are all tangible. My worry is that since it is a foreign wealth tax that it might not be deductible. The instructions say foreign real estate taxes are deductible but that is all. I think this is going to be more and more prevalent as governments are getting more and more desperate. The bail-in in Cypress for example and the various Central Banks laying plans for a wealth tax on bank accounts. Julian

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