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StellarAccounts(Dynamo)Registered Tax Professional
11 Mar 2021

Client has a overseas investment property in Hawaii - it is rented as holiday accommodation and hence they have to pay county taxes - ie GET which is like a sales tax on income earned from rentals and TAT which is a Transient Accommodation tax on rentals - has anyone had experience with this?
Do you think this should be included as a deduction? It isn't income tax so I am really not sure.

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Bruce4Tax(Taxicorn)Taxicorn
14 Mar 2021

Client has a overseas investment property in Hawaii - it is rented as holiday accommodation and hence they have to pay county taxes - ie GET which is like a sales tax on income earned from rentals and TAT which is a Transient Accommodation tax on rentals - has anyone had experience with this?
Do you think this should be included as a deduction? It isn't income tax so I am really not sure.
County taxes, city taxes = what we call council rates = deduction, not FTC.
GET, TAT can be treated like GST in residential property expenses here, or sales tax for business pre 2000.
Just another expense.
Our client who bought a US rental property did not keep it long because he was appalled at the long line of ticket clippers taxing every step of the process.
Remember the line in The Sopranos - visiting the big house in the country,
and considering 'Property taxes, and you gotta pay those."

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
14 Mar 2021

Client has a overseas investment property in Hawaii - it is rented as holiday accommodation and hence they have to pay county taxes - ie GET which is like a sales tax on income earned from rentals and TAT which is a Transient Accommodation tax on rentals - has anyone had experience with this?
Do you think this should be included as a deduction? It isn't income tax so I am really not sure.
County taxes, city taxes = what we call council rates = deduction, not FTC.
GET, TAT can be treated like GST in residential property expenses here, or sales tax for business pre 2000.
Just another expense.
Our client who bought a US rental property did not keep it long because he was appalled at the long line of ticket clippers taxing every step of the process.
Remember the line in The Sopranos - visiting the big house in the country,
and considering 'Property taxes, and you gotta pay those."

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