@mpsingh08 , for federal tax purposes, IRS does not distinguish between rental / income property located on the US or abroad, except for depreciation ( even that has been eroded by the TCJA ).
(a) for Schedule E --- you report your gross rental income , allowable expenses ( including taxes that are based on property value, right to rent etc. ) & depreciation (per US tax laws) . US will then use the net income as additional income on your form 1040 for computing taxable income and your tax liability thereon.
(b) for form 1116 ( foreign tax credit ) -- for this you must have had your foreign tax filing completed/filed/finalized so as to avoid having to file an amended return to update foreign taxes paid. On this form your foreign income is the gross rental and the foreign taxes paid is the actual amount paid.
(c) there is no requirement that the foreign rental property has to be generating profit ( per local tax laws or US tax laws) for purposes of recognizing foreign taxes paid and credit claim thereon.
Does this make sense? Do you need more help on this.
stay safe
pk
