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Does a foreign investor need to pay income tax in the US when collecting rent from a rental property?

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Grace Wang

Homeowner from Sterling, Virginia

Jul 25 '11, 09:36 AM


Hi everyone,

My relative is a foreign national and would like to partner with me to get a rental property in the US. I am wondering how she has to deal with US income tax since the rent may be her only income in the US as a foreign investor. What capital gain tax rate she has to pay in case we make profit when we sell this rental property? (My relative and I haven't purchased any RE properties yet. The question is only for planning purpose.)

Thank you for your wisdom and input.

Grace



Mitch Kronowit Donor

SFR Investor from Orange County, California

Jul 25 '11, 11:01 AM


You need to check with a tax professional. Generally, money made in any country is taxed in THAT country. If the money gets repatriated, i.e., imported to their country of residence, they may pay even more tax.



Grace Wang

Homeowner from Sterling, Virginia

Jul 25 '11, 11:49 AM
1 vote


Thanks, Mitch. I just did a research online and found the below link:
http://www.irs.gov/businesses/small/international/article/0,,id=129631,00.html



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