@vsr94539 , sorry it took me a awhile to get back to you. As I read the ATO ( Australian Tax Office ) articulation on rental income, it is a tax on Net-Income -- the allowed deduction are generally quite similar to that of IRS Schedule-E. Thus when you report your foreign Net-Income ( that attracted AU taxes and is being taxed in the USA ), you also report the actual foreign taxes paid to AU --- you do NOT report the gross foreign income NOR foreign deduction ( even though the net rental income for US tax purposes may be different than that for AU purposes ) allowed.
Hope this helps
