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Question
I live full-time in the US, but I have an Airbnb in France. The income from that Airbnb is automatically deposited into a French bank account. I pay property & income taxes in France on it. Do I have to pay income taxes in the US too?
AI accountant’s answer:
Yes, as a U.S. resident or citizen, you are generally required to report your worldwide income on your U.S. tax return, including income from your Airbnb property in France. However, you may be eligible for a Foreign Tax Credit (Form 1116) or a deduction for the foreign income taxes you have paid in France. This can help to alleviate potential double taxation. When you file your U.S. tax return, you will report the income and expenses from your Airbnb property on Schedule E. You may also need to file additional forms related to foreign assets or financial accounts, like FinCEN Form 114 (FBAR) or Form 8938 (FATCA), depending on your circumstances. It's essential to keep accurate records of your income and foreign taxes paid, and you might want to consult with a tax professional experienced in international taxation to ensure your reporting is done correctly.
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Michael Eaton, CPA
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