Overseas property without rental income

[a_f]

I jointly own a property with my father (50-50 share) in a foreign country. In the last tax year, my parents lived in that property the whole time, and I didn't receive any rental income (I support my parents financially).

Under this condition, do I need to pay any tax for that property, or can I claim any deduction (e.g., depreciation)?

Thanks,

[DianeW777 · Accepted solution]

No.  Since your are not renting the property, it was actually converted to personal use which does not allow any deductions with the exception of real estate taxes on your itemized deductions. You should select that the property was converted to personal use and the date should be January 1, 2021, or other date your parents began to occupy it. 

The property remains in suspension or dormant for business until and unless you convert it back to rental use in the future.  Keep all of your records because at a potential point of sale in the future you will need the information for depreciation recapture as well as any assets that might be sold with it.