@RossAngelos , assuming that you are a citizen/resident (Green Card )/ resident for tax purposes you are taxed on your world income and therefore allowed to deduct your world wide expenses that are attributable to generating that income. Thus if you have foreign rental income, then expenses associated with that income are generally deductible.
The question here is (a) is there a foreign income associated with hiring a foreign contractor ; (b) was this expense ( paying a foreign contractor ) associated with personal asset or an income generating asset--- e.g. if you have a second home in a foreign country and you employ a local contractor , then that expense is not deductible ( just as it would not be deductible for a second home in the USA ).
So you have to tell -- which country, what was the contractor paid for, what type of asset etc. etc.
