You would still report it on Schedule E in the Rental section of Premier Edition.
There is no
difference for US tax reporting if the property is in the US or abroad. You
will calculate your net rental income on schedule E.
Report this income
under Rental Property, and be sure
to indicate the location is in a Foreign
Country (See the attached screenshot below. Click to enlarge.)
Go into your
TurboTax return. Not sure you're in there? Click on the orange Take me to my return button.
1.
Search for rentals and then
click the "Jump to" link in the search result.
2.
Answer Yes to the
question Did you have any rental or
royalty income and expenses?
3.
Follow the on-screen instructions as you proceed through the rental and
royalties section.
o
We'll first ask you to enter general information about your rental
(description, address, ownership percentage, etc.)
o
Eventually, you'll come to the Rental
Summary screen which is where you enter your:
·
Rental income
·
Rental expenses
·
Capital assets and depreciation
·
Vehicle expenses
The only difference
you will encounter is the type of depreciation you are required to take when it
is foreign property. It will need to be depreciated over 40 years instead of
the normal 27.5
If you paid Foreign Income Tax on the profit from your
rental, you may qualify for a Foreign Tax
Credit or a deduction. Follow these steps to see
enter information about the foreign income tax you paid in TurboTax:
- Open (continue) working on
your return in TurboTax.
- Enter the your foreign
rental income and expenses.
- If you have any other foreign
income, enter it before continuing.
- Search for foreign tax
credit, then
click the "Jump to" link in the search results.
- Click Continue and carefully follow
the onscreen instructions. Note that rental income is considered Passive
Income.
- In most cases, taking the
credit works out better than the deduction. TurboTax will help you decide
which one is best for you when you go through the foreign tax screens.
