# How to report Indian rental income to IRS in USA



## rohnert77 (Apr 20, 2009)

We own an apartment in India and get a rent of about 6000 USD annually. We pay about 30% taxes in India itself and our US tax bracket is much lower than that, therefore I believe I will not be taxed in USA (but still need to report). I also pay about 800 dollars to a property management company annually to help me rent out this property.

Q1. How do I report my income to IRS and then take deduction on it? Which forms do I need to use? 

Q2. Is it true that rental income is not subjected to SS and Medicare tax?

Thanks Guys ..


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## Bevdeforges (Nov 16, 2007)

Take a look at this page from the IRS website Rental Income and Expenses - Real Estate Tax Tips and you may want to look up the publication they mention there (Publication 527).

You'll be able to deduct expenses from the rental you receive - including any taxes you pay on the property in India and depreciation. You pay US taxes only on the net income (i.e. after you deduct your expenses) from the apartment.

Rental income should not be subject to SS and Medicare tax under most circumstances. (As always, there are a few exceptions.)
Cheers,
Bev


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## rohnert77 (Apr 20, 2009)

Thanks for the info .. I will read through it.


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