Rental Property in Canada with Under Market Rents

[howard-jung]

Hi,

I'm a canadian citizen living in the US, legally authorized to work in the US.  

I have two rental properties in Canada. If one of them were rented for under fair market value rent, from my understanding I am supposed to do the following:

1. type in the rental income in the Miscellaneous Income--> Other reportable income section.

2. Type in the rental expenses in the Other Deductible Expenses--> Less Common Deductions, and itemize my rental expenses.

Is this correct?

I also do not own a house in the U.S.    Am I able to deduct the mortgage interest paid in the Other deductible expenses section (with the other rental expenses)?

THanks in advance for your help!

[TomD8]

Income received from a property rented below fair market value is entered on Schedule 1 (Form 1040), line 8z, "Other Income."  Mortgage interest and property taxes are reported on Schedule A, subject to all applicable IRS limitations.  No other deductions are allowed.

https://www.irs.gov/pub/irs-pdf/f1040s1.pdf