Feb 12, 2010 from
Anonymous
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$0.00
If I have a house that I rent out in another country, what is the taxes on it
I've already tried...
Answers
About the Expert
I have been doing taxes since 1977. I worked 5 years for the IRS as an auditor and group manager. View Profile
The "taxes on it" depends on all the other facets of your income. Assuming you are a US citizen you are taxed on your worldwide income. So you would file a Schedule E rental schedule showing income and applicable deductions. The net income or loss would be part of your overall taxable income. However, if it is a loss you may not be able to deduct it depending on the passive activity rules. Also, if it is profit and you are also paying taxes on it in the other country you may be entitled to a foreign tax credit.
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