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I've started construction (in Mexico) for a small Family water park, the expense to operate/build exceeds the monthly/yearly income. how to report in USA?

it will take 10 years overall construction of the park, started construction 2021, it has been influx of capital from my part every month to keep construction and operation going, buying/paying for licenses, permit, architectural, construction/ops teams materials, goods etc...minimal income (covers goods but not any type of wages or materials for construction or Operation)
question is how to report on my USA tax report as I work in USA but am creating this water park in Mexico that eventually will create profits.
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I've started construction (in Mexico) for a small Family water park, the expense to operate/build exceeds the monthly/yearly income. how to report in USA?

seek professional help.    for US tax purposes much of those expenses would likely not be currently deductible.  if you have continued losses the IRS could argue you have a hobby which would make the income taxable but would result in the disallowance of expenses that should not be capitalized.   also, you may have tax issues with Mexico.  

 

 

 

 

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I've started construction (in Mexico) for a small Family water park, the expense to operate/build exceeds the monthly/yearly income. how to report in USA?

seek professional help.    for US tax purposes much of those expenses would likely not be currently deductible.  if you have continued losses the IRS could argue you have a hobby which would make the income taxable but would result in the disallowance of expenses that should not be capitalized.   also, you may have tax issues with Mexico.  

 

 

 

 

Carl
Level 15

I've started construction (in Mexico) for a small Family water park, the expense to operate/build exceeds the monthly/yearly income. how to report in USA?

The complexities of your situation are way beyond the scope of this forum, Assuming you are a U.S. citizen or legally registered green card holder, I would expect you to have a CPA/Accountant firm on your payroll that takes care of all this stuff on your behalf. If not, then you need to find one yesterday (if not sooner) that is well versed in both U.S. tax law (as well as state tax law for your resident state) and Mexico tax law. 

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