I am a Canadian citizen living in the United States (in California) and would like to buy an investment property. I want to declare a small business for owning and managing the property which I anticipate would come with tax deductions (i.e. on the interest payments of the mortgage and deductions for my business office for running the property business). A key point is that I am considering buying an investment property in Canada.
Would my business be legitimate and recognized by the IRS? What are the requirements for a small business to be recognized? Where can I find definitive answers about these things?
Please let me know if any of my assumptions are incorrect.