This is a complicated one. I own a house in Belgium which I rent. Recently, Belgium has started taxing non-residents, regardless of the income they make, by taxing the potential rental income. I was planning to just deduct the taxes as expenses from the rental income I declare in the US but Turbotax suggested I may be able to credit the taxes paid by filling out form 1116. The taxes are calculated based on property value. They are NOT property taxes. What should I do? Form 1116? What income and expenses should I use for the income. The same as the expenses used in the rental income form? Should I just forget about form 1116? Turbotax does not seem to account for my case.
