Non Resident US Tax Preparation
New Rental Homeowners
Now that you own your foreign rental home, there are a number of matters to consider.
The following steps will ensure you are tax compliant while OAS will help by providing advice and guidance on all these matters and any concerns regarding your US investment.
ITIN (Individual Tax Identification Number) Application
All rental property owners in the US are required to have an ITIN (Individual Taxpayer Identification Number). The ITIN application is normally made at time of purchase, or shortly afterwards. We will apply for this Tax ID, as part of our overall service.We are Certified Acceptance Agents and have close links with the IRS and can ensure the ITIN application process is successful.
Taxes that affect Rental Homes:
Federal Income Tax, Filed annually by non-resident homeowners who rent out their property for 14 days or more per year (Deadline for filing to the IRS is June 15th.)
State Income Tax Some States in the USA have State Income Tax and if your property is in such a State then in addition to the Federal Filing, a State Income Tax Return will be required
Real Estate Tax (payable annually to the County Tax Collector’s office and due by March 31st.) The term Real Estate refers to tax on real property. In the case of Vacation homeowners, Real Estate refers to land, dwelling, fixtures and any other improvement to the land.
Sales & Use Tax(payable monthly to Florida Department of Revenue, due by the 1st of the month) Short Term Rental Properties only
Tourist Development Tax(payable monthly to the County Tax Collector by the 1st. of the month) Short Term Rental Properties only
Tangible Personal Property Tax(due annually, by March 31st.) The rules affecting TPPT have recently changed. With effect from January 1st. 2008, homeowners whose furniture, fixtures and equipment has been assessed at less than $25,000, will no longer have to pay this tax, although in the first year of ownership they may have to apply for this exemption. Furnished Property Only
Licences that affect Rental Homes (Florida)
State resort dwelling license (due once per year). Short-term rental homeowners must obtain this license from the Florida Department of Business & Professional Regulation, prior to renting out the property. Generally, the application and renewal of these licenses is dealt with by your management company. Renewable Annually via Tallahassee Department of State.
Local Business TaxReceipt( formerly Occupational Licence )concerns homeowners who rent out their US property and receive direct rental payments or rentals via the management company .(Payable annually to the County Tax Collector)