If i buy an apt in miami for renting purposes do i have to pay tax on the income rent if i dont live in usa?

Question

if i rent an apt in miami florida and i dont live in the usa do i have to pay taxes in tne income rent

Answer 1

IOf you are non-resident, the tenants or leasing company are REQUIRED to withhold 30% for taxes before passing the rest of the income on to you.

You have a choice.at tax time.  You can accept the 30% as your tax bill or you can file a 1040NR, use a schedule E and claim the same expenses/deductions a US person could on a 1040.  (And having filed with the election, you can then ask your tenants to stop the 30% withholding.)

When you sell, you can expect the buyer to withhold 10% for estimated taxes.  You MUST file a return the year you sell.  If you used the 30% method all along, you owe capital gains tax (and possibly AMT) on the difference between the purchase price and the selling price.  If you elected to file a tax return each year with a schedule E, you will also pay tax on the part of the gain attributable to depreciation.

The IRS site has more info.

http://www.irs.gov/businesses/small/inte...

Answer 2

Are you a US citizen? If yes, you should pay taxes on income from your apartment, no matter where you live. I think so.

Answer 3

Yes.  Whether you're a US citizen or resident or not, the income is taxable.  You report the income and expenses on Schedule E.