1. The lifetime its value is depreciated most often is different from the rate in the USA.
2. It is reported on Form 1040 schedule E, if it is not owned through a foreign partnership, corporation or foreign trust.
3. If the property is owned through a foreign corporation, trust or partnership special forms must be filed with your US personal tax return such as form 5471, 8865, 3520, etc. Failure to file one of these forms if required can result in a penalty of $10,000 or more.
4. The income and expenses of the rental must be reported for taxes in the same manner as a US rental property.
5. You will get a tax credit to offset your US tax on the rental income for income taxes paid the country in which the rental is located.
6. The US income tax rules for the rental apply to the property even though it as a VRBO, ARBNB, or other vacation rental.
7. You cannot do a 1031 exchange from your rental into a US rental property or exchange a US rental property into a foreign rental property.
8. If you maintain a bank account abroad to collect rent and pay expenses you may be obligated to file Form 114 each year to report that (those) account(s). Failure to report can result in substantial penalties.
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