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    bindu55119's Avatar
    bindu55119 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 8, 2011, 08:42 AM
    Rental property outside US
    Hi,

    We have 2 rental properties in India which yields income as well as we still pay mortgage on those two properties. In which schedule do we report the income and deduct the mortgage for the rental properties.

    Any insight into this is very much appreciated.

    Thanks.
    Bindu
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 20, 2011, 12:14 AM
    You must use Schedule E to report the rental income and expenses. Be sure to use the 40-year depreciation schedule for overseas property.

    If you need professional tax help with this, email me at [email protected].
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Feb 20, 2011, 04:02 AM

    If on this rental income you paid any taxes in India, file Form 1116 to claim foreign tax credit. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 20, 2011, 11:25 AM
    Yes, MukatA is correct; I should have mentioned the Foreign Tax Credit issue as well.
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