Hello XXXXXXXXXXXXX,
Do you actively participate in the management of this property?
If so, is your adjusted gross income less than $150,000 for the year?
I pay a management company 10% of the rental revenue
Gross income is above $150,000
Hello again 501,
When you own rental properties, if you play an active role in the management of the properties and if your AGI is below $150,000 per year, then you may deduct up to $25,000 per year in net rental losses from your other income. However if your income is above the allowed amount, these rental losses would not be deductible. You may, however, carry forward these rental losses, and either use them in a year when your AGI would be below the $150,000 limit, or you may deduct the accrued losses in the year you sell the property.
That will be the only way you realize any tax breaks for this property.
If this was helpful please press the Accept button.
Thank you 501
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad