My wife and I are Canadian residents and we own a rental property in Florida. In 2013 we had a rental loss of $9,300 ($9,000 revenue less $18,300 expenses). This is fully a passive investment. We do not have any other income or expenses on our 1040NR form. I anticipate that every year going forward we will have a loss in the $7,000 to $9,000 range. Do we need to fill our form 6198? Will we ever be able to use our cumulative losses for any tax purposes?

My wife and I are Canadian residents and we own a rental property in Florida. In 2013 we had a rental loss of $9,300 ($9,000 revenue less $18,300 expenses). This is fully a passive investment. We do not have any other income or expenses on our 1040NR form. I anticipate that every year going forward we will have a loss in the $7,000 to $9,000 range. Do we need to fill our form 6198?=============>>>>>>>> As you tried to rent it and simply take losses, you could complete Sch E for 2013amd deduct expenses.Form 6198 is used to figure the profit (loss) from an at-risk activity for the current year. Form 6198needs to be filed if you had any amounts that were not at risk invested in an at-risk activity. At-risk limitations would be needed, unless for some reason you are not at-risk for the real estate debt. If you are responsible for paying the real estate debt, then you should be at-risk. As the rental is your only passive type activity ( as you have no other interest in other types of passive activities such as partnerships, corp, or other real estate ventures), the IRS is trying to determine if the losses on Sch E of 1040 were, in effect, funded 100% with your own money. If you paid for all the expenses out of your pocket, then all of that "investment" is at risk. Hpwever,you do not need Form 6198 as that is only to determine how much loss is allowed when some of the investment is not at risk. If this is your only passive activity, and you have an overall loss, then you may deduct a loss up to $25k aslongas you actively tried to rent it, and you will not have to file form 8582 if all of the reqTax laws that limit the amount of tax losses an investor (particularly a limited partner) can claim.
Note; Tax laws limit the amount of tax losses an investor (particularly a limited partner) can claim. At-risk rule means that losses on real estate investments will be deductible only to the extent of the amount of money the equity investor stands to lose.for inatance,If you have $10K at risk in a real estate investment that generates $3.33K per year in tax losses, the losses may be used for only three years;$10k/$3.33K Thereafter, the losses may be used only if you contribute more money or property (net of withdrawals) or becomes liable to repay borrowed money. Amounts at risk include: cash contributed to the activity ;borrowed money for which the investor is personally liable ; property pledged as security for the real estate activity, provided the property is not used in the activity An exception is made for qualified third-party non-recourse financing.

Will we ever be able to use our cumulative losses for any tax purposes?=================>>>>>>>you need to file Form 8582, , if you have incurred losses on the property. This is to substantiate and claim any passive loss carryovers either when you have income from the rental property or when you sell the property.

My wife and I are Canadian residents and we own a rental property in Florida. In 2013 we had a rental loss of $9,300 ($9,000 revenue less $18,300 expenses). This is fully a passive investment. We do not have any other income or expenses on our 1040NR form. I anticipate that every year going forward we will have a loss in the $7,000 to $9,000 range. Do we need to fill our form 6198?=============>>>>>>>>>> As you tried to rent it and simply take losses, you could complete Sch E for 2013amd deduct expenses.Form 6198 is used to figure the profit (loss) from an at-risk activity for the current year. Form 6198needs to be filed if you had any amounts that were not at risk invested in an at-risk activity. At-risk limitations would be needed, unless for some reason you are not at-risk for the real estate debt. If you are responsible for paying the real estate debt, then you should be at-risk. As the rental is your only passive type activity ( as you have no other interest in other types of passive activities such as partnerships, corp, or other real estate ventures), the IRS is trying to determine if the losses on Sch E of 1040 were, in effect, funded 100% with your own money. If you paid for all the expenses out of your pocket, then all of that "investment" is at risk. Hpwever,you do not need Form 6198 as that is only to determine how much loss is allowed when some of the investment is not at risk. If this is your only passive activity, and you have an overall loss, then you may deduct a loss up to $25k aslongas you actively tried to rent it, and you will not have to file form 8582 if all of the reqTax laws that limit the amount of tax losses an investor (particularly a limited partner) can claim.
Note; Tax laws limit the amount of tax losses an investor (particularly a limited partner) can claim. At-risk rule means that losses on real estate investments will be deductible only to the extent of the amount of money the equity investor stands to lose.for inatance,If you have $10K at risk in a real estate investment that generates $3.33K per year in tax losses, the losses may be used for only three years;$10k/$3.33K Thereafter, the losses may be used only if you contribute more money or property (net of withdrawals) or becomes liable to repay borrowed money. Amounts at risk include: cash contributed to the activity ;borrowed money for which the investor is personally liable ; property pledged as security for the real estate activity, provided the property is not used in the activity An exception is made for qualified third-party non-recourse financing.

Will we ever be able to use our cumulative losses for any tax purposes?=================>>>>>>>>>>you need to file Form 8582, , if you have incurred losses on the property. This is to substantiate and claim any passive loss carryovers either when you have income from the rental property or when you sell the property.