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Case Study 2: Nonqualifying TaxesEva is a U.S. citizen who owns a home in Hong Kong. She paid $2,000 in real estate taxes and $1,000 in personal property taxes. She also paid $3,000 in income taxes to the government of Hong Kong. Does Eva qualify for the foreign tax credit? Click here for an explanation. Eva cannot claim a foreign tax credit for either the real estate taxes or the personal property taxes because they are not income taxes. She can, however, compute a foreign tax credit on the $3,000 in income taxes paid to Hong Kong. 
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