rental property loss tax question USA US and Canada

Hi, I have a rental property .. if you have more deductions than profit does that role over to the next year ? .. thank you .. Cxxxxxxx
david ingram replies:
In Canada, you would fill in form T776.  If the bottom figure is a loss (excluding Capital cost Allowance (CCA which most people call depreciation in Canada) ), you would put the loss on line 126 of your T1 general and get a decoction against other income.
In the event that you are an American resident with a Canadian rental which is losing money, any loss can NOT be carried forward AND can NOT (I repeat NOT) be carried forward.  The secret is to elect to capitalize the interest under Section 21 and increase the ACB (Adjusted Coast Base) of the property.
In the US, you would calculate the loss on schedule E and claim depreciation on schedule 4562.  Depreciation MUST be calculated with the exception of a limited number of persons holding on to their property to sell it an even then, only the California courts (out of six possible national courts dealing with the subject) has recognized or suggested that a person renting while waiting to sell their residential house can file their return without claiming what amounts to mandatory depreciation.
The good news is that if  you are a non-resident of the USA owning US rental property, you get to carry the loss over to other years unlike Canada where I remind you that a non-resident can NOT carry a loss over to other years.  
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