It's a S Corp registered in St Lucia, but I'll need to check since it may also be a C corp? Will this make a big difference?
The property is managed by Tryall Club which is the resort in Jamaica where the property is located. We pay an annual maintenance and membership fee which covers the on going property management and supervision, since we do not live in Jamaica.
Modified adjusted gross Income is over $150,000.
One more item for clarification, My wife manages the properties as her work. She does all the marketing and spent more than 50% of her time managing the property in term of the renovations, hiring of staff and coordination with the resort and prospective renters. She traveled to jamaica to oversee the property 8 to 10 times during the year. Would this qualify her as a real estate professional and therefore allow the losses?
In addition, I am responsible for our primary income and we file a joint tax return,
Two final questions;
First, does my wife have to have any specific real estate designations or licenses to meet the qualifications? She did spend more than 50% of her time given that she resigned her normal position to manage the development, renovations etc. but did not have any prior professional real estate experience or background?
Second, what forms would I need to complete to refect the rental real estate and is that form different from the form that I would need to file for the holding company (St Lucia S corp) that we own that in turn owns the property in jamaica.
Your responses have been very helpful so far and I think this will be the last questions I want to address to complete this process.
Thanks for your help on this. In doing more work, I've come to realize that the corporation is a Limited Liability company, so it's not a S corp. How does this change the answer you've previoulsy provided and what are the forms that I will need to complete?
Does it make a difference that the LLC is registered in a foreign country?