Ask Experts Questions for FREE Help !
Ask
    moonlite's Avatar
    moonlite Posts: 90, Reputation: 3
    Junior Member
    		  
    #1

    Jul 16, 2011, 09:37 PM
    Is this income taxable ?
    I'd like to know if income received here in the USA from a rental property overseas is taxable and should be reported to the IRS. Thank you.
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
    Senior Member
    		  
    #2

    Jul 17, 2011, 06:34 PM
    Yes, if you are a resident alien/resident/US citizen, you are required to report your worldwide income on your tax return. If you pay taxes on that income, you may be able to take a credit or deduction for those taxes (form 1116).
    If you are a non-resident alien. You are only required to report on US source income
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Jul 17, 2011, 11:49 PM

    Yes, if you are a U.S. citizen or resident, you must do Schedule E (Form 1040) to report your rental income.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jul 19, 2011, 01:09 PM
    Note that, in most cases, a rental activity generally produces a LOSS on your return, which means it is to your ADVANTAGE to report the rental activity.
    moonlite's Avatar
    moonlite Posts: 90, Reputation: 3
    Junior Member
    		  
    #5

    Jul 19, 2011, 05:00 PM
    I agree. But in this case the rental property is generating a positive cash flow- lots of it. The return from this property are wired to bank accounts here in the USA. Are the recipients of this money responsible for reporting this extra income to the IRS and should they pay taxes on it ?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #6

    Jul 20, 2011, 05:53 AM

    Moonlite - your question was already answered by Mukata. The answer is yes if the person receiving the funds is a US citizen or resident. Is there some further clarification you're looking for?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Investment income, temporary or a permanent difference on the taxable income? [ 1 Answers ]

"Alegro also anticipates investing in local county bonds which should earn about $7,000 investment income in 2010."

Taxable and non-taxable income in 2008 [ 1 Answers ]

Hello, I have already asked this question, but I made a mistake, So here it is as it supposed to be: Briefly my situation: I and my wife came to the USA in September, 2006. I have J1 visa- scholar (from the very beginning) and my wife J2, we are citizens of Poland. We have never left the USA...

Do those income count among my taxable income?-dual status [ 4 Answers ]

Please help, I am on dual status for 2008 tax purpose. I was on H1B and left US in April, 2008. My questions are: During my non-resident period of 2008, I only received interests from US saving account and dividends from US brokerage account(some of dividends distributed in my IRA and mutual...

On NJ Tax form, for income taxed by NY, do I use the NY AGI or NY Taxable Income amt? [ 1 Answers ]

When filling out the NJ Income Tax form, I have to identify the amount of income taxed by NY State. Do I use the Adjusted Gross Income value (NY form IT-203) line 31, or the NY Taxable Income value from line 37?

Income is taxable or not [ 1 Answers ]

The amount that we get as per diem allowance in us is non taxable in us, if this amount anyone takes back to india, is it taxable there or not.

View more questions Search