But, there is a credit available for taxes paid to other states to deduct from your CA tax bill to somewhat avoid double taxation. 

One thing you have to confirm or ask is taxation.

@Tim AlbrightI recommend finding an accountant who specializes in real estate taxation.

If there's a treaty for the avoidance of double taxation between the two countries, you should hopefully be able to credit your Portuguese income taxes against your US ones.Hope this helps.

I recommend finding an accountant specializing in real estate taxation.

You do need to consider multi-state taxation and passive activity losses when doing this.

@Ray WhiteI recommend finding an accountant who specializes in real estate taxation and tax planning for high earners.

@Tasha RivardI recommend finding an accountant specializing in real estate taxation.

Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

Make sure you work with an accountant specializing in real estate taxation come tax time.