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    Rebeccaleung115's Avatar
    Rebeccaleung115 Posts: 1, Reputation: 1
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    #1

    Aug 23, 2014, 04:12 AM
    Tax issue
    I (as Chinese resident) bought a condo in Washington state using a C-corp. It was intended to rent it out. Apart from the profit tax, when the company pays dividends to shareholder, can tax treaty between US and China applies to dividend and the tax rate can be 10% of gross dividend? Besides, what is the tax bracket for rental income to individual if tax treaty between US And China applies?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Aug 23, 2014, 08:23 AM
    Your tax strategy is sound, but with the various deductions associated with rental properties (most notably depreciation), it is likely the rental property will show a LOSS.

    If so, your use of the S Corporation has unnecessarily complicated your tax filing. You could have more simply filed Form 1040NR with a Schedule E.

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