For rental income from a foreign property, I got a legal opinion which said that income must be shown in that country's taxes, not my US taxes. Do I just leave this out?

[mo_carey]

I previously showed this rental income in both my US and the foreign country tax returns and I paid US tax on it. For 2020, I was planning to remove this, though wanted to check if this is correct, or I need to do something different?

[HelenC12]

You must report foreign rental income on your US income tax return in addition to the country where your rental is located. As a citizen or resident of the United States, all your worldwide income is subject to taxation.  

Complete the rental section (Schedule E) so that you will be able to claim all related expenses and depreciation.

• Property located outside the country, you're required to depreciate the cost over 40 years. 
• You'll be able to claim a credit for the foreign income tax paid. See Where do I enter the foreign tax credit (Form 1116) or deduction for 2020?

You may amend your prior year income tax returns to file Form 1116. See How to amend (change or correct) a return you already filed

[mo_carey]

Thank you for the quick response.  I was unclear on why the US tax law would require me to pay tax twice on the same income.  I went ahead and read the relevant double tax agreement and noted that each country addresses their tax treatment differently, i.e. the US allows me to claim a tax credit for taxes paid for the foreign rental (as per the response received below), whereas this specific foreign country exempts my US-based income for it's tax calculation.

The unfortunate consequence of this, is that due to credits from the foreign country, I don't end up paying tax on the foreign rental in that country, though I do pay tax on this foreign rental in the US, as the US does not have the same credits that apply.  In terms of equity this makes sense, though is not preferable from a cash-flow perspective.