Can I write off interest/depreciation or other shortfalls on international investment property on my US tax?

Question

I have an investment property abroad, and it is cashflow negative. I've heard that I can only write off deductions on my US tax at sale, not annually like I would if it were a US property. Can I write off these deductions on my US income tax?

Answer 1

What kind of property is it? Rental property you would fill out a Schedule E and report income and expenses each year. Investment property that you are holding to sell in the future would have expenses recognized in the year of sale. From what you are indicating by negative cashflow, I'm assuming that it is rental property. If so you can write off deductions yearly.

Answer 2

earlier you proceed, hire somebody to instruct you the math for the 300 and sixty 5 days you purchase, the years you lease and the 300 and sixty 5 days you sell. If the valuables is in yet another state, do no longer overlook to do the tax return for that state besides. Rehabbing the valuables isn't a restoration. this is extra on your value foundation. value foundation is ostensibly dealt with by way of depreciation. homes do no longer fall over at 27.5 years, so some or all of that depreciation is paid decrease back whilst the valuables is bought. home equipment are on a tighter schedule (say 5 years). property taxes could be an annual fee, as may be the cost of hiring a administration organisation. Edit--Gary, I often get all those taxpayers long after the C organisation buys the valuables. i've got on no account understood why all human beings is so enamored with being a hundred% proprietor of a company.

Answer 3

The rules are pretty much the same regardless of where the property is located. You also get a credit against any US tax liability for any foreign income taxes paid.