The IRS Deductions Blog

Archive for the ‘Deduction Calculation’ Category

Items on Amazon Right Now for Age Pension Deductible Amount:

17 Other Changes and Status of Prior Announcements

Items on Amazon Right Now for Calculate Deductions Canada:

Kevin Brake – Systematic Process to Instructional Design Part 2 of 3

Items on Amazon Right Now for How To Calculate Deductions For W4:

Paying Taxes : What Is a W-4 Form?

Items on Amazon Right Now for Deductible Amount For Centrelink Purposes:

Question: US Form 1116, Foreign Tax Credit. Foreign Rental, Do not itemize, what line do I list mortgage interest…?

I rent out a house that is on my property in Canada. I have how much we have collected in rent and I want to exclude the mortgage interest, insurance, water bills, and some expenses to calculate my income from the rental, but I am not itemizing my deductions on the US 1040, I am taking a standard deduction, and it seems that form 1116 is forcing me to itemize. All I want to do is take away what I have paid in mortgage interest and insurance to come up with a correct total. I don’t know which line would work best for me.
Thanks Jss, that helps, but I still find the form 1116 extremely confusing. I don’t know where to put the mortgage interest and property taxes I paid on the form. I am designating the rental property as approximately one third the value of the total property and as such wish to deduct one third of the mortgage interest, property taxes, and water bills. I just don’t understand the form too well.

Answer: For rental income you will file schedule E (Form 1040). You can deduct the expenses.

Then you will complete Form 1116 to get credit for the taxes paid in the foreign country. Read: http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html

Items on Amazon Right Now for How To Calculate Deductions Canada:

How to Calculate Canadian Payroll Tax Deductions – Guide