We are Canadians, looking to retire in the Atlanta, Georgia area; would like to buy a home and rent out until we relocate.

The tax you pay on the income received from the rental would depend on your tax liability where you officially reside.

There would be property taxes to pay that depend on the property you buy.

It is likely the combination of mortgage interest, real estate taxes and depreciation will EXCEED any rental income you would receive, so you would owe NO federal or state income taxes, though you WOULD have to file U.S. federal and Georgia state income tax returns.

Thank you so much for your replies. I should have worded my question better - we were more concerned with property tax (had heard that in some states non-residents pay higher property taxes versus residents).

(non-resident purchasing a home in atlanta to rent out until relocated to atlanta)

Threads merged

Tax rates are higher on property that is rental ( owner does not live in them)
The real estate agent should be able to provide you current taxes and estimated taxes for rental

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Originally Posted by sdlyd

heard that in some states non-residents pay higher property taxes versus residents

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I don't believe that is true. But it is true that commercial or investment property is taxed at a different rate. Since you would be buying this property initial as commercial/investment property, you would be subject to that rate.

Yes, rental properties in Georgia are taxed at a higher rate for real estate taxes because rental properties do NOT qualify for the homestead exemption.

However, as noted in my first post, it is likely that the costs of the properties will exceed your rental income, so there are no income tax implications.