Canadian living in Canada who owns one rental property in US

[rubberman1966]

Hello everyone. I'm new to this site so hopefully I'm going about this the right way.

Here's my story, my wife and I are co-owners of a condo in Nevada. We have full-time tenants that pay monthly rent. That, combined with the expenses to date, have kept us in a loss position since 2008.

Does anyone know exactly what US tax forms I need to fill out? We have been in a loss position since '08 so we have been taking the loss as a deduction on our Canadian returns. So far, we have each filed a 1040NR, a 1040NR - Sch. E and form 8582 - Passive Activity Losses Limitations. This is the way I think it should be done but every year I seem to question myself.

I've heard so many different people say so many different things that it's becoming more of a nightmare than anything else when dealing with this annually.

Does anyone know, nice and simple, the forms required to fill out for a simple one-condo rental? Maybe someone on this site will have an easy answer. I've looked everywhere, to no avail.

Thanks in advance for your your time.

[JGCA]

As non residents you have to file the 1040NR and Sch E every year declaring the rental income otherwise there would have to be a 30% witholding tax on teh gross rental receipts this way you effectively file on a net income basis so teh witholding issue is clarified by filing teh 1040NR. Also remember you must take depreciation expense on the US side even if you are not doing so on the CND side.

[nelsona]

As I asked on the other board, what possible other forms are they talking about?

[rubberman1966]

Thanks for the reply. Depreciation expense?? Could you clarify for me? Thx.

[nelsona]

On US return, you MUST deprecaite your property. No choice. You then recapture the depreciation at sale.

On your Cdn return, you ahve the option to do this. Most don't depreciate if they are already in a loss position.