Hi all,

I am about to file my '07 US taxes as a resident alien. I am an Australian citizen and have a property that is being rented in Australia. My question is - can I claim expenses related to my Australian property (interest, mortgage repayments, etc) on my US tax return? The loan I have is not with a US bank. Bear in mind, I have also claimed these deductions on my Australian return which I have already filed for the same year.

Any help would be greatly appreciated!

You will also report your rental income and deduct interest and mortgage from the rental income. You will report income and expenses on Schedule E (Form 1040).

Thanks for the response,

I am assuming that since I did not live in the property for any of the year, I can't claim it as a primary or second home? Only as a rental property?

So I should not then also report the same rental income and expenses on my Australian tax return?

Since the property is in Australia, I think that you will be required to report in Australia.
Then for the taxes paid in Australia, you will claim credit on your U.S. tax return by filing Form 1116.