Question

Can foreign loss be used to reduce US taxable income

Forum|Forum|2 years ago
April 5, 2024
1 reply
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Hi, I have a negative net income in Canada this year.

Can this amount be used to reduce my taxable income in the US?

You would report your business income and expenses incurred in Canada the same as you would if incurred in the United States, so you can deduct a business loss sustained in a business carried on in Canada if that is what you mean.

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C

canadaustax123Author

Thank you ThomasM125. To clarify, the negative net income comes from two rental properties that I own under my personal name, it's not owned under a business entity.

In this case, can I still deduct this net loss from my taxable income in the US? Thank you.