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Employee
February 2, 2021
Question

How can I claim a negative income on rental property located outside the US? Am I required to submit form 1099 if I pay foreign company to work on my rental property?

  • February 2, 2021
  • 1 reply
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1 reply

Critter-3
February 2, 2021

No you do not 1099 a foreign company.  And you don't report negative income on the Sch E ... you enter all the rent you do receive and enter all the expenses ... if that becomes a loss on the rental then the loss may or may not be deductible currently.   Now be sure to capitalize and depreciation improvements if needed ... you can only deduct repairs.