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New Member
posted Jun 4, 2019 6:33:06 PM

Should I file income tax for rental income I receive from a foreign country for which I don't pay income tax to that foreign country?

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5 Replies
New Member
Jun 4, 2019 6:33:07 PM

Are you asking if you need to include foreign rental income on a US income tax return? Are you a US citizen or resident?

New Member
Jun 4, 2019 6:33:09 PM

I am a green card holder (permanent resident). yes, I was asking if I need to include foreign rental income on a US income tax return. Rental income is being depositied to the foreign bank in the same foreign country. I don't pay rental income to the foreign country.

New Member
Jun 4, 2019 6:33:10 PM

Yes- If you are a US citizen or resident, you will need to include all worldwide income (include foreign rental income) on your US income tax return (even if this foreign rental income is not taxes in the foreign country where the rental is located.)

You will also be able to claim all these rental expenses (including maintenance, foreign property taxes and travel to inspect your property, etc.) just as you would a US rental. The main difference is that a foreign rental is depreciated over a 40 yr useful life (whereas domestic/US rentals are deprecation over a 27.5 yr life).

To enter rental information in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "rental income and expenses" in the search bar then select "jump to rental income and expenses". TurboTax will guide you in entering this information.

Here is a link that can provide you with helpful information related to your rental property 

TurboTax - Tips on Real Estate Taxes and Real Property

New Member
Jun 4, 2019 6:33:13 PM

Thank you for answer above. When I file the income only on W-2, I receive refund around $ 100. But, when I add foreign rental income amount, it shows me that I might owe around $ 470 . Is it normal for rental income amount which is less than $ 3000 in total for the year to change refund/due tax amounts this much?

New Member
Jun 4, 2019 6:33:15 PM

It depends but increases in income can not only decrease your credits and deduction due to phase-out limitations but your increased income will be taxed at the highest marginal tax rate.