msindc1
Level 5
04-05-2022
03:01 PM
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Folks, clients have residential property overseas which they rent out. I report the income on a Schedule E, correct?
In the state field, do I enter "US" to indicate that the income was not local?
And how do I report the income as foreign-source so that a larger portion of foreign-source tax payments can be claimed? It looks like if I add it to the Form 1116 by adding a new entry in Window 35.1 it double-counts the income.
Thanks!
Thanks.
Micah
In the state field, do I enter "US" to indicate that the income was not local?
And how do I report the income as foreign-source so that a larger portion of foreign-source tax payments can be claimed? It looks like if I add it to the Form 1116 by adding a new entry in Window 35.1 it double-counts the income.
Thanks!
Thanks.
Micah
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sjrcpa
Level 15
04-05-2022
04:18 PM
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Yes it gets reported on Schedule E.
There are different depreciation methods for property used outside the US.
Yes Code it US, but it is still taxable to their resident state (one or 2 states are exceptions)
The more I know the more I don’t know.
