I purchased a Rental property in a foreign Country in mid December 2016. Rent collected 3635. Expenses 9268. loss 5633. Deductible amount 0.00. ?? present & future Yrs.

[view2 · Accepted solution]

Generally, all of the same US tax rules apply to outside the country real estate that apply to inside the U.S. properties.

Deductions or losses from passive activities are limited. You generally cannot offset income, other than passive income, with losses from passive activities.

The amount of rental losses that you can write off is proportionately phased out between $100,000 and $150,000.

If you are an active participant and your adjusted gross income is $150,000 or more, you can write off no rental losses on your tax return in the year of the loss. 

Passive losses are deducted  only against passive income , mortgage interest, real estate taxes and generally maintenance expenses  are offset first then base adjustment last and then  if there is not enough income the difference is a carryover to future years until you have passive income sufficient to use or when sold in a qualified disposition.

[tcbvi]

If I am not an active Participant & my AGI is less than 150K & my loss is <100K will I be able to deduct passive loss equal to the amount of the rental income ?

[view2]

Rental activities are considered passive. This means that losses from your passive rental activities can only offset income from that activity or other passive sources.