lovemahal-1
Level 3

Taxpayer has rental income in foreign country (Philippines) is it going to be reported on Schedule E?

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Just-Lisa-Now-
Level 15
Level 15

Yes


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
TaxGuyBill
Level 15

If you are not knowledgeable about foreign rentals (or businesses), I HIGHLY recommend that you have this client go elsewhere.

While some circumstances would be reported very similar to a US rental (except for the depreciation), there are other circumstances that require additional forms, foreign gain/loss calculations, and more.  And the penalty for missing some of those items is HUGE ($10,000 per occurrence).