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    Ahuertas's Avatar
    Ahuertas Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 29, 2013, 08:12 AM
    Taxation on rental income for G4 visa holders
    Good morning,

    I'm a G4 visa holder working full time in an international organization. I own a condo in DC, still paying mortgage for the next 25 years.

    I am planning to move to a larger place, also in the US. In case I decide to keep and rent put the condo, how would the rental income be taxed?

    1) 30% flat on gross income? Which I understand it's taxation on rental income for non-resident aliens, when the property is not connected to a trade or business in the US.

    2) at the normal US Income Tax progressive rate. Which I understand is taxation on rental income for resident aliens, or for non-resident aliens when the property is connected to a trade or business in the US.

    Thank you very much for your assistance!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert
     
    #2

    Jan 29, 2013, 11:33 PM
    You will file as a non-resident alien, filing Form 1040NR and Schedule E to report the rental income and all allowed expenses.

    If the result of the tax calculations shows a loss on the Schedule E, no tax will be due.

    If there is a profit, it will be taxed at the progressive rates.

    If you need professional help, email me at the email address in my preofile (if you cannot see it below).
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Jan 31, 2013, 06:12 AM
    Rental income is considered U.S. source income so it is taxable. You will report your rental income and expenses on schedule E (Form 1040).

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