2007-12-03 13:38:37 · 2 answers · asked by leofib1618 2 in Business & Finance ➔ Taxes ➔ United States
I'm currently living in Italy, and i'm not going to live in USA. Does it change my situation?
2007-12-05 08:23:55 · update #1
If you earn profits in the US, you need to pay taxes on those profits to the US government.
You have two choices. You can have your U.S. rental income subject to a 30% withholding tax and you have no further requirement to file a U.S. tax return or pay additional U.S. taxes.
You may, however, choose to consider your rental income as an effectively connected U.S. business activity. That requires you to file a U.S. tax return and itemize your rental income and expenses. See Publication 519, “Tax Guide for Aliens”, for information. Remember, filing a U.S. return requires an Individual Tax Identification Number (ITIN - Form W-7).
2007-12-03 13:45:58 · answer #1 · answered by 2007_Shelby_GT500 7 · 3⤊ 0⤋
Good question. It depends on how your business is structured. If you have formed a business entity in the United States (such as an LLC) and your rental property is owned by that company, then yes you would be liable for income tax on that revenue.
But, if you own that rental property as a citizen of Italy, I'm not sure how they would hold you liable for the taxes.
Do you LIVE in the United States? I believe that would be a determining factor.
Tony Rush
2007-12-03 21:43:23 · answer #2 · answered by Tony R 2 · 0⤊ 2⤋