rental income in foreign country

[hsyang]

I bought a condo in other country. and I would like to rent it out. Do I need to pay the tax for the rent as income in the U.S.? 

[DavidD66]

Yes, you have to report your rental income and expenses on Schedule E.  In general, the rules for renting a foreign property are the same as they are for a US property, there are some differences.  One of those differences is the depreciation period.  For US residential rental property it is 27 1/2 years.  For foreign property it is either 30 or 40 years, depending on when you placed the property in service.  Prior to 2018, depreciation of foreign residential property was 40-years.  Assets placed in 2018 or later are depreciated over a 30 year period.  

See the following TurboTax Help Article on rental property:  Rental Real Estate and Taxes

[hsyang]

do I have to be double taxed by the U.S?

[RobertB4444]

You won't be double taxed.  When you enter in all of the rental information into TurboTax you will also be able to enter in any information about foreign taxes that you have paid on that income.  The US will reduce your tax bill dollar for dollar for the amount that you have paid to the foreign country so you won't have to pay taxes an the same amount twice.

@hsyang 

[JaniceB-EA]

Can you deduct the foreign taxes paid from the rental income or do you have to report as Foreign Tax Credit?

[JotikaT2]

No, it will either need to be taken as an itemized deduction or as an actual foreign tax credit to offset the total tax liability when you file your income tax return.  

Please see this link for additional information on entering the foreign taxes paid.

@JaniceB-EA