Which of the following statements about rental property located in a foreign country is TRUE?

U.S. citizens and resident aliens are not taxed on foreign rental income.

If the taxpayer has a mortgage on the property with a foreign lender, special reporting and withholding rules apply to the mortgage interest.

Taxpayers who receive income from a foreign rental must complete Part III of Schedule B.

Depreciation for foreign residential rental property is calculated in the same manner as domestic rental property.