If a foreigners buy a rental property in US and then rent it out, will the rental income be taxed?
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If a foreigners buy a rental property in US and then rent it out, will the rental income be taxed?
If so, what will be the rate and how do you file/pay the tax?
Asked on November 7, 2011 under Real Estate Law, Maryland
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If a resident alien in this country earns income, he or she is obligated to file both a state and federal tax return in the state where he or she has her permanent residence in the United States.
The rate of taxation depends upon how much income is generated by the rental property in the the tax rate in this country is a graduated increase based upon how much is earned by a given individual.
Good question.
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