Airbnb 1099-k rental income in Philippines

[NPN1205]

Hello,

I received 1099 k rental income from Philippines. I participated 100%. I do all my booking and no co-host expenses. I do everything online and self checkin. 
Note: I haven’t file the 2024 taxes in Philippines yet. I bought my turbo tax yesterday and haven’t started.

1. Should use schedule E for my qualified expenses and accumulated depreciation (years?) for my 2 units in the Philippines (condos). Also, do I have to list separately for each units? 
2. Form 1116- should I enter info also?

3. I have a carryover loss from my previous US condo rental 3 years Argo, can I use to offset my foreign rental income?

thank you!

[DianeW777 · Accepted solution]

Yes, you should use Schedule E for the condo rental income and expenses. The assets will continue to carryforward and calculate your depreciation each year.

• Where do I enter income and expenses from a rental property?

Your property in a foreign country is depreciated over a 30-year or 40-year period, depending on when it was first placed in service for rental use. Instead of the 27.5 year for US residential properties the period is different.  

• Prior to 2018, depreciation of foreign residential property was limited to 40-year period.   
• 2018 and Future: New assets placed in service now get the lower 30 year period.

No you don't have to list each one separately, however you must keep good records and be prepared for any future sale of one versus all of them at once.

• 10 Tax Tips for Airbnb, HomeAway & amp; VRBO Vacation Rentals

Form 1116 will be used when you have the Philippines income and tax paid.  Keep in mind the credit is the lesser of:

1. the US tax charged or 
2. the tax paid to the Philippines.

• Where do I enter the foreign tax credit (Form 1116) or deduction?

[NPN1205]

By the way, my question #3. have a carryover loss from my previous US property condo rental 3 years Argo, can I use to offset my foreign rental income under the same form?

[RobertB4444]

Yes, passive losses can offset passive income.

@Noregen  

[NPN1205]

Thanks Expert!🙏