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Form 1116 - missing expenses definitely related to the income on line 1a

In the Form 1116 related to income produced by foreign rental properties I have I see that the expenses generated by the properties are not reflected in Part I, line 2: where in the online form do I need to input these? How do I get to reflect these expenses in the resulting form and tax return?
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1 Reply
MarilynG1
Expert Alumni

Form 1116 - missing expenses definitely related to the income on line 1a

Your Rental Income and Expenses are reported on Schedule E, same as a US rental property.  If you paid tax to a foreign country on your Rental Income, in the Foreign Tax Credit section, you can enter the amount that you were taxed on by the foreign country (either net or gross income).  

 

If you were taxed on the net income, you don't have to enter expenses.   If on the gross income, you can enter the same 'definitely related expenses' that you used on your Schedule E (excluding depreciation).

 

Here's more info on Depreciating Foreign Property.

 

@JAIME-TITOMALONE 

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