Can Foreign Rental Income and Property Taxes be reported both On Sch E and F 1116?

[erdinch]

Hello,

I have a rental property outside USA. Can I report the rental income taxes I pay both on Sch. E and Form 1116 in my 2024 tax return?

Many thanks

Erdinch

[DavidD66 · Accepted solution]

No.  You do not report the income tax you paid on foreign rental income on Schedule E.  It is income tax, not a rental expense.  You do report it on Form 1116 to claim a foreign tax credit. 

[erdinch]

DavidD66,

Many thanks for your immediate reply; appreciate it.

Rental income tax situation is clear.

How about property taxes I have paid? Can I report them on either Sch E and/or on F 1116?

[SusanY1 · Accepted solution]

Yes, you can report the foreign property taxes on Schedule E in the section for taxes paid.  Property taxes paid are a rental expense.  

[erdinch]

Thank you very much SusanY1; I appreciate the clarification.

Best regards