Tag Archive for Rental Properties

Taxes For Expats Renting Property In The U.S.

Many Americans own property in the U.S. when they move abroad, and so are faced with the question of whether to sell or rent it.

How to answer this question often depends on whether they are moving abroad temporarily or permanently: if they are moving overseas temporarily, if may make more sense to rent it, while if they are moving abroad permanently, they may prefer to sell up and use the proceeds to buy a home abroad. Read more

Filing Season And Rental Activities

A regular area for Tax Court litigation for the past few years involves individuals with a few rental properties deducting the losses from them under the theory they are real estate professionals (using a special rule of section 469(c)(7)). These individuals usually have jobs outside of the real estate profession and do not devote more hours than in their other employment to the rentals. They clearly do not qualify for the special rule. Yet, they claim the loss (rate her than carrying it forward) and then after losing during the Internal Revenue Service audit, they go to Tax Court and lose. Why? A better way to challenge would be to try to get Congress to change the law. Perhaps trying to convince Congress to increase the income limit so they could use up to $25,000 of the loss currently (under a modified section 469(i)). Read more

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