Foreign Rental Income US Tax Calculator
Report foreign property rental income on Schedule E — deductions, depreciation, foreign tax credits, and FBAR/FATCA obligations
US Schedule E allows these deductions against foreign rental income:
US Tax Analysis
UK deducts 20% basic rate tax at source via agents. Register with HMRC to receive gross rents. UK rental profit taxed in UK, then claim FTC in US. Note: US allows full mortgage interest deduction (unlike UK's Section 24 restriction for UK individual landlords — but Section 24 affects your UK tax calculation, not US).
Rental income from Australian property is taxable in Australia (non-resident withholding may apply). Australian rental losses may be ring-fenced. Capital gains on disposal: 50% CGT discount does NOT apply to non-residents after 2012 — full CGT at marginal rate.
French furnished rentals under BIC regime; unfurnished under revenus fonciers. French social charges (CSG/CRDS 17.2%) may not be fully creditable in US. Treaty exemption may apply for US citizens as French residents.
Spain taxes non-residents on imputed rental income (1.1–2% of cadastral value) even if not renting. Actual rental income at 19–24% non-resident withholding. Spanish taxes are creditable in US via FTC.
UAE has no personal income tax — no foreign tax to credit. US fully taxes net rental income. Depreciation deduction helps. Consider whether property qualifies as foreign QEF/PFIC investment.
German rental income taxed in Germany for non-residents. German church tax and solidarity surcharge may not qualify as FTC. Treaty Art.6 allocates real property income to source country.
All depreciation claimed is subject to recapture when you sell the property — taxed as ordinary income at your marginal rate (up to 25% unrecaptured §1250 gain rate). Even if you're in a zero-tax country, this recapture will apply.
Foreign rental losses are passive — they can only offset other passive income, not active income. However, if your AGI is under $100k (with $25k annual exception for US real estate), the loss rules may differ. For foreign property, losses generally carry forward only.