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June 3, 2019
Question

I am entering taxes paid against international rental income in the foreign tax credit section, but it isn't giving me a credit

  • June 3, 2019
  • 1 reply
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    1 reply

    Employee
    June 3, 2019

    Is the rental income from foreign positive ?  Note foreign tax credit is allowable only based on a ratio of foreign income to world income. 

    Also under 26. 904.(j).2.(B) only up to $300 ( $600 for joint filers) of foreign income tax on passive income can be allowed without the limitation , mentioned above.  TubroTax would automatically get you  there  unless you choose to use form 1116 ( for limitation computation ).

    Which country? and you are talking about income tax ( i.e. tax on rental income at source ) and not property tax or a tax on the privilege of rental income , based on some criteria other than gross rental income --yes ?