I am working on Form 1116 for foreign taxes paid on income through1099DIV and 1099INT.
Rental income without foreign taxes involved should be included in Form 1116?
This is my situation:
I have income by renting a Bare Land out, but Foreign taxes is not related to this income. (I pay $0 to the government legally)
Received $ 5000 from renter
Property Tax paid $ 1000
Management Fees paid $ 500
This income is reported in Schedule E.
Q1. On Form 1116 PartI 1a. Gross income from sources within country
Do I need to include rental bare land income here? Or No necessary because it's not generate any taxes?
If it's needed to report, $5000 (before expenses) here and $ 1500 (Property tax and Management fees) on Part I 2. Expenses definitely
related to the income on line 1a ?
Q2. Part I 3. d. Gross foreign source income
Do I need to include rental income here regardless of whether I report it to part I 1 a. or not?
Q3. Does the IRS consider income from rent the Bare Land as Passive Income?
I really appreciate any responses and help.
Thank you so much.
