How do I report rental property income earned outside the US for which I already paid taxes in the foreign country where I earned it?

[LindaA · Accepted solution]

Report this income under Rental Property, and be sure to indicate the location is in a Foreign Country (see screenshot). As you continue through the tax interview, enter Real Estate Tax as a Rental Expense.

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 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.

See the TurboTax FAQs below for more information about reporting foreign income and claiming a credit or deduction for foreign income taxes.

https://ttlc.intuit.com/replies/3290703

https://ttlc.intuit.com/replies/4203946

[MarilynG1]

You can report Rental income/expenses for a foreign property in the Rental section, under Wages & Income. 

Enter property details in the Property Profile and Asset/Depreciation sections.  

Here's more info on Foreign Rental Income and Depreciating Foreign Property. 

You can claim a Foreign Tax Credit for tax paid on your rental income to a foreign country.

For details about claiming the credit, review this article on Claiming the Foreign Tax Credit.