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    hourlydaily's Avatar
    hourlydaily Posts: 2, Reputation: 1
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    #1

    Apr 13, 2008, 03:49 AM
    Claiming Overseas Property As Deduction
    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!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #2

    Apr 13, 2008, 05:27 AM
    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).
    hourlydaily's Avatar
    hourlydaily Posts: 2, Reputation: 1
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    #3

    Apr 13, 2008, 06:05 AM
    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?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #4

    Apr 13, 2008, 06:37 AM
    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.
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