itonewbie
Level 15
04-15-2022
09:44 PM
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The treaty article on income from immovable properties is relatively straight forward. That means you'd report the income based on US tax law on the US return and claim foreign tax credit for Mexican taxes paid/accrued in plain vanilla fashion.
The complexity is in whether the rental property should be treated as a QBU, which impacts how the income/expenses would be reported in USD, and whether there is any foreign currency-denominated loan taken on the property.
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