FAQs About Owning Investment Property in the US
What is the U.S. tax filing year? The U.S. tax filing year for individual filers runs January 1st – December 31st What tax returns have to be filed? U.S. Non Resident Income Tax Return – Form 1040NR See US Income Tax Tangible Personal Property Tax Return to the Property Appraiser’s Office where your property is […]
Understanding US Rental Property Income Withholding
Rental Income withholding of 30% is applied to gross rental income received by a managing or rental agent on behalf of a non-resident owner of U.S. rental property. Non-resident rental property owner Foreign individuals and foreign corporations may elect to have their passive rental income taxed as if it were effectively connected with the U.S. […]
Passive Activity Loss – v – Vacation Home Loss
Passive Activity Loss Where your personal use days are less than the greater of 14 days or 10% of your rented days; any losses are considered “passive activity loss”. Example – Rental income = $15,000. Expenses = $20,000. Total of rented days is 200 and total of personal days is 10. The expenses of $20,000 […]
US Income Tax Compliance for Nonresident Owners of US Rental Property
Income Tax is filed annually to the Internal Revenue Service (IRS) due by June 15th (for most non-resident homeowners) using Form 1040NR All property owners residing offshore who receive income from their investment and rental properties, where IRS withholding has not been applied, must file a U.S. income tax return. The U.S. tax year runs […]
US Estate Tax (Inheritance Tax)
Estate Tax Under existing law, the U.S. estate tax is imposed at the death of foreign individuals owning the U.S. real property based on the entire value of the property that exceeds $60,000. Tax treaties between the U.S. and the home country on the taxation of the owner must be taken into account. These treaties […]
FIRPTA Withholding – Foreign Investment in Real Property Tax Act
FIRPTA (Foreign Investment in Real Property Tax Act) Withholding is the Withholding of Tax on Dispositions of United States Real Property Interests The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorized […]
1031 Exchange
A 1031 tax deferred exchange is a method by which a taxpayer (“Exchanger”) who owns property which has been held for investment or in connection with a trade or business can exchange the property for like kind property which will be held for investment or in connection with a trade or business and defer paying […]
Capital Gains Tax
Capital Gains tax is a US Federal Tax that: Long Term and Short Term Gain Capital gains tax is payable on the net gain from the sale of property. The gain is calculated by taking the sale price less the purchase price and all related costs incurred in the purchase and sale of the property. […]
Voluntary Disclosure of Florida State Sales & Use Tax
Voluntary disclosure on Sales & Use Tax is the process of reporting previously unpaid tax liabilities on rental income received to the Florida Department of Revenue. It is the taxpayer’s opportunity to voluntarily pay these taxes with minimum penalty. This program can assist with registration and payment, provide technical assistance in determining tax liabilities and […]
Voluntary Disclosure of Florida County Tourist Development Tax
Voluntary disclosure on Tourist Development Tax is the process of reporting previously unpaid tax liabilities on rental income received to the Tax Collector’s Office (where your property is located). It is the taxpayer’s opportunity to voluntarily pay these taxes with minimum penalty. This program can assist with registration and payment, provide technical assistance in determining […]
Florida Tangible Personal Property Tax
Tangible Personal Property Tax is an ad valorem tax assessed against the furniture, fixtures and equipment located in businesses and rental property. Ad valorem is a Latin phrase meaning “according to worth”. Your rental property is considered business property and, as such, you must pay a separate tax on the value of your property furnishings. […]
Florida County Trim Notice
Property owners, do you know what a TRIM notice is? In 1980, Florida legislature passed the “Truth-in-Millage” (TRIM) act. This law is designed to inform taxpayers which governmental entity is responsible for the taxes levied and the amount of tax liability owed to each taxing entity. The Notice of Proposed Property Taxes is known as […]