AmyC
Expert Alumni

Investors & landlords

Rental property goes on Sch E. The foreign tax deduction goes on Sch A while the foreign tax credit goes against your actual tax liability.

 

You must pick one, either the deduction OR the credit. If you are not itemizing, you will take the foreign credit on Form 1116. If you are itemizing, I suggest trying it both ways to see which is better for you.

 

The easiest navigation is to select the magnifying glass/search tool in the upper right hand of your screen. The first solution will be a "Jump to" when available. Sometimes the key is choosing the right words to put in the search bar.

 

* Type rental property and you get  Jump to rental property.

*Type foreign tax deduction and you get Jump to foreign tax deduction.

* Type foreign tax credit and you get Jump to foreign tax credit.

 

 

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