Depreciation exceeds income, do i get a refund?

[Charles Cruse]

Hi All,

Looking for some sources or answer if available. I am currently working abroad long-term. So I am not taxed in the US on the income I earn from my job. However, I do own a rental property in the US. 

I know I will have a taxable income from the rent I earn, but what if my deductibles from appreciation and expenses exceeds my earned income? Am I leaving money on the table here or would I receive a refund that accounts for this? 

I am considering investing in REITs since their dividends are taxed at ordinary income, but I’m also unsure if that amount can actually be affected by deductibles.

Any information is appreciated. 
Thanks!

[Joe Splitrock]

We really need more information to answer this question. If you are a US citizen, then you are responsible for taxes on income, even if working and living abroad. If your rental properties generate a passive loss, your income level determines whether you can claim that passive loss against W2 income. If there is no other income or your income is too high, the loss would just be a carry over loss. You could use it to offset income in future years. You really need to hire a CPA to ensure you are doing your taxes properly. My aunt has lived out of the country for 30 years and neglected to pay US taxes. She had to work out a settlement with the IRS to resolve.