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Can foreign loss be used to reduce US taxable income

Hi, I have a negative net income in Canada this year.

 

Can this amount be used to reduce my taxable income in the US? 

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2 Replies
ThomasM125
Expert Alumni

Can foreign loss be used to reduce US taxable income

You would report your business income and expenses incurred in Canada the same as you would if incurred in the United States, so you can deduct a business loss sustained in a business carried on in Canada if that is what you mean.

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Can foreign loss be used to reduce US taxable income

Thank you ThomasM125. To clarify, the negative net income comes from two rental properties that I own under my personal name, it's not owned under a business entity. 

 

In this case, can I still deduct this net loss from my taxable income in the US? Thank you.  

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