Rental Property with Lien in India

Forum|Forum|7 years ago
October 30, 2018
1 reply
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Hi,

I had purchased a a property in India while i was working there.

Then i moved to the states and had put the property on rent.

Also, my home loan was still going on.

So , i would get rental income while the property was on lien in India.

I have paid taxes on this property in India.

I want to know, do i have to mention this while i pay my US taxes and would i have to pay taxes on such property in the us also.

As the total rent i receive is less than 10000$.

Thanks ,

PDeshmukh

Carl11_2

Employee

Yes. You will report all of your rental income and expenses on SCH E as a part of your personal tax return. When working this through the program it is imperative that you clearly identify the rental property is *foreign* rental property. This is because foreign rental property is depreciated over 40 years, unlike U.S. property which is depreciated over 27.5 years.

Note that any foreign taxes paid will be taken into consideration by the program also, and any U.S. tax liability on that rental income will be reduced proportionally by the foreign taxes paid in the same tax year. Overall, you may not see much of a difference really, since it is rare for rental property to show a taxable gain. This is especially true if there is a mortgage on the property.