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Is foreign mortgage interest paid 100% deductable against all US taxable income?

I purchased a rental Property in UK and I am earning rental income. Is UK mortgage interest deductable from taxable USA income ?

The tax treatment for a rental property owned by a US citizen or green card holder in US or in a foregin country is same. The mortgage interest is deducted from rental income from the property to calculate the net taxable income. You can take out any loss suspended under the passive loss rules. Any suspended loss is carried forward indefinitely until you have income or sell the property. If you financed the poperty using a foreign currency, any resulting gain/loss from paying off the mortgage principal in the event the dollar rises/falls relative to the euro will be taxable/deductible in the US.

Can this be treated like mortgage interest for US tax returns even though you dont have 1098? Can previous years interest also be reported this year if you did not do this last years?

A as an itemized deduction, even if the second home is located outside the U.S. The interest should be reported on Schedule A on the line that says mortgage interest not reported on Form 1098. However, if you reside in the U.S. and the lender is a foreign bank, then you are required to withhold 30% tax on the interest portion of the payments, unless a lower treaty rate applies. If you want to rely on the treaty, you need to obtain a Form W-8BEN from the foreign bank where the bank certifies that it qualifies for treaty benefits. I