Hi

I am a Swedish citizen living in Sweden and I am in the process of buying an apartment in NYC. I will be subletting the apartment for most of the year and my questions are:

1) How much is the tax on the income from the subletting?

2) If I finance the purchase with a loan from my bank in Sweden, will I be able to deduct the interest from the rent income? What I mean is, is this still true:
(rent income - interest) * tax rate = tax

Thank you!

The federal tax rate is a graduated rate with the highest rate of 35%. You will also owe NY state and NYC income taxes. I don't know off-hand how much these are, but the combine rate for both is likely less than 10%. If you borrow in Sweden, you will not be able to deduct the interest to reduce your U.S. tax.