itonewbie
Level 15

Thanks for the kind words, @Taxing!


So no housing deduction for Sch C income, but itemize deduction can be taken on Sch A without reduction of the excluded foreign income. All of $31k can be taken as itemized deduction. Is that correct ?

In this case, based on the info presented, that would be correct in relation to foreign mortgage interest.  Deduction for foreign real property taxes, however, has been suspended under TCJA.


The software took the QBI deduction. A foreign business is not allowed to take the QBI.

How do I stop the QBI deduction within the software ?


That's because PTO doesn't know whether the business has any US-ECI.  You will need to toggle that on the Qual. Bus. Inc. Dedu. tab by entering 2 on the line for Business is a qualified trade or business: 1=yes, 2=no [Override].

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